To stay within the rules of this subreddit, I must inform you ahead of time that the stock we are discussing is a penny stock that I currently hold, but I will not be naming it for the purpose of this conversation. However, some explanation OF the company is required for clarity. I come to this subreddit for an outside perspective, not tainted by personal investment or allegiance to a company based on faith.
The company is currently labeled as a mining company, but is currently working to move into the technology industry based on advancements that have only recently been collaborated by third parties. During discussions with shareholders the conversation of a Reverse Split (RS) came up in order for the stock to make the leap to a proper index.
Having had long and in some cases heated discussions with other shareholders, some want the RS and others including myself want nothing to do with it. The issues:
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To take the stock to its goal price for indexing would currently require a 15-20/1 RS. For those who joined at true penny stock prices this is potentially catastrophic for growth potential.
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The company is on the end swing of a valuation process on their technology, which has the potential for a large change in the industry. Those with true faith in the company believe that once the processes and valuation is completed, that the stock price would rise naturally to the required indexing price and we could for go the RS or have a 2/1 at worst.
Does anyone here have any experience with RS?
What was the outcome of the company after the RS?
Any thoughts I can bring to the collective shareholder table will help. Thank you.
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