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Akoustis reverse split or delisting? -3
17:07 23-Aug-24
Akoustis has made the classic Friday night 8-K filing, in which you can read all the gyrations, but the summary is that the company has requested a timely hearing to reverse a Nasdaq delisting determination, which should have come 180 days after it received notification. My expectations in descending order of probability are that:
- the stock will be delisted and trade OTC
- the company will declare bankruptcy
- a reverse split will be done at a big multiple to maintain compliance
I see #3 as least likely because it simply opens shareholders up
to further losses. Ironically, today's trading action brought
AKTS shares back up to a dime, which might buy it another 180 days
after all. However, the only reason I see for not doing the
reverse split before now is because the company was trying to cut
some sort of deal. Reverse splitting after waiting this long
would seem like giving up any chance of that even at current
valuations, and my guess is that insiders would make out better
under bankruptcy protection. #1 allows the company and its
shareholders to continue pursuing the long hard road to
profitability. However, they are likely to face a trading
situation like we've seen with GMLPF,
where most retail investors can only sell the stock, not buy it.