I understand that the reverse split will not dilute the equity, but I do feel that the price will not hold and we will still be trying to satisfy the Nasdaq's $1.00 Minimum.
I do have a question though...If there are 3.25B shares outstanding today and they do a 50:1 reverse split, that leaves 65 million shares outstanding at a theoretical price of $7.50.
They then issue 4.5B more shares for a total shares outstanding of 5.15B shares. How in the world can they maintain share price if they now have 42% more shares? I realize the reissue will generate cash, but quite frankly I don't see anyone paying $7.50 out of the gates for this stock. I think the shorts will drag it back down into the dirt. Why wouldn't they, now we have more shares for the same company.
I still consider myself a newbie at this stock stuff, so thanks for your patience.