Yes, you are correct Wook'ster. If this were trading in the big show (NASD, NYSE, AMEX), in the above $5 range, it would be no big deal for a stock split or reverse split.

In the OTC/Pinks shell game things sometimes don't follow the norm.

When a shell does an RS, then it leaves room for continued dilution after dilution. SP suffers, but the owners benefit because they now have a higher sp to sell into and dilute as they please and further sell into. By the time shareholders find out, the quarterly report, the approved shares are starting to get into the system and dilution is already in full swing, making shareholders stuckholders. Wash, rinse, repeat.

Just saying we need to be aware here. If company is legit, then less of a problem. Although, they may be just another shell player. If it is a shell game, then wait for the pump and get what you can. The Q reports, which most people do not read closely, after the RS will be the tell.