The reasons are in the proxy. I don't see how a 10 for 1, which might - might - move the pps tp $1.50 gets us near what we need for institutions to take an interest, unless - as I wrote before - there is another shoe to drop. The board only has until November 15 to use the reverse split authority. This strikes me as very interesting. Maybe there is some expectation that some other development will occur after the shareholders meeting and November 15.
A takeover does not work like that. An acquirer has to report holdings when it hits 5% and declare intentions at 10%. The price would go through the roof if Noble declared its intentions to do a takeover.
I cannot believe that he did not know how that news/rumor would impact the share price. This is penny stock land. As is generally known by those familiar with this market is that the announcement of an RS will negatively and heavily impact the pps. This is because an RS is almost always done by failing companies in an attempt to artificially and temporarily boost the share price. Institutions know this as well; so I don't see how they would all of a sudden bite at a temporarily higher price.
It is possible for a company to avoid the loss of market cap that an RS normally causes, but only if there is another shoe that drops at the same time. In IFNY's case, the announcement of a firm drilling schedule or some sort of substantial additional financing commitment that required the RS, something big to counteract the downward pressure on the pps. Without that other shoe, an RS makes no sense whatsoever. None.