SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : CYPB - Cypress BioScience
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: dwight martin who wrote (263)6/2/1998 2:56:00 AM
From: John S. Baker  Read Replies (1) of 586
 
You ask why the reverse split is necessary?


In the same section of the Proxy ... available on Edgar ... the company lays out its reasons:


1. To improve the Company's ability to raise new capital


2. To improve the marketability and liquidity of the Company's Common Stock.


3. To enhance the Company's ability to have its Common Stock included for listing on the NASDAQ National Market System.


As discussed here earlier, many institutional investors and big brokerage sales reps are prohibited from buying/recommending stocks which have a value below a certain level.


And once the stock reaches $5, it can be margined in many of the larger brokerage houses.


It's quite possible that a system of formal options will be set up.


All of these strike me as worthwhile reasons to do the reverse split sooner, rather than waiting tediously for the stock price to climb to the requisite levels.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News