1 for 3 reverse split and reverse splits are never good for retailers . Half the treasury goes to RMK which leaves ONT broke by the spring and chasing money again . They'll dilute for 20% under retailers just like last time and the dilution will equal a 1 for 5 reverse split . A 1 for 5 reverse split calculated at .40 cents today will require $2.00 to break even . 92 mil shares outstanding after the 1 for 3 split and 130 mil by the spring when the next financing is done . None of the insiders are going to give up two thirds of thier millions of cheap option but the retailers get rolled up , 1 for 3 . This is cash and major dilution that isn't being used to prove up a resource , just one Mickey Mouse company taking out another Mickey Mouse company . Without even factoring the RMK takeout a 1 for 3 reverse split should value every .40 cent share at $1.20 , just to break even . That's the theory but it never happens . In practise , if the drilling results are fantasic , retailers will be lucky if thier .40 share is worth .30 cents by the time this deal is done . It may show .70 cents per share in your portfolio , but you lost two thirds of your shares . Management keeps thier millions of cheap options and thier friends do the next flow through financing at .55 cents with half a warrant per share . Everyone wins , except the retailers .