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Akoustis reverse split or delisting? -3


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:
  1. the stock will be delisted and trade OTC
  2. the company will declare bankruptcy
  3. 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.