With news of the 12:1 reverse split becoming effective next week, I wanted to hear everyone's thoughts on JEM.
• Current public float will be approximately **672k shares** after the 12:1 consolidation.
• Before the announcement, the company had roughly **8.06 million shares outstanding**, which will become about **672k** after the split.
• The stated reason for the reverse split is to regain compliance with Nasdaq's minimum bid price requirement and maintain its listing.
• The company has recently announced AI and blockchain supply-chain initiatives and appointed a new executive director.
The biggest thing that catches my attention is the structure.
A float under 700k shares is extremely small. If buying volume shows up with a legitimate catalyst, these types of floats can move very quickly. On the flip side, if there's no catalyst or if the company raises capital, the downside can be just as violent.
I'm aware that reverse splits generally have a negative reputation, but they don't automatically kill every stock. We've seen some low-float reverse split names experience significant momentum runs when news and volume aligned.
So I'm curious:
Do you think the reverse split completely ruins the setup?
Does the tiny post-split float make it worth watching?
Is there any concern about future dilution or financing that I'm missing?
Are there any upcoming catalysts that could actually bring volume back?
Looking for both bull and bear cases. I'm interested in hearing what people who have traded post-reverse-split low floats think.