Remember! The board cannot initiate a reverse split (RS) until it has shareholder approval. Generally, this is done at an AGM, though it could be brought about by an extraordinary meeting. Hence, the only realistic opportunity to obtain approval is the coming AGM on August 12th 2014.

The most substantial argument for a RS is: it allows uplisting onto a larger, internationally reputable stock exchange with the advantages of greater exposure, with vastly greater financial backing and to provoke the interest of analysts etc. The most cogent argument against is the association with other companies who have undertaken reverse splits that have subsequently failed. The argument runs that this is a common experience and, the message PTK would give in investors’ minds, would be perceived as negative.

Imagine the company had undertaken their present request at the last AGM in 2013. It is open to debate, but has there been an opportunity in the last 12 months for a successful uplisting. Perhaps in the 1st quarter of this year there was some potential but if investors behaved as they have in the last 2 months there may well have been a share price fall after such a split. I can see the negative effects that might have.

Thus, I conjecture, if an uplisting to the NASDAQ is acted on, it seems an imperative that such a move would have to be associated with good news to support the share price. Indeed, it can be argued that several items of good news, released sequentially, may be required. We are all well aware of the good news we wish, particularly partnerships and crucially revenue streams.

All this begs a few questions, who is it that knows what is happening? Who can see the future laid out so that a well planned split will allow the type of share buying that will push up the share price to level I and, undoubtedly you, want? I come back to a point I’ve made before: it is only the present management that can make a decision which has the merit of real foresight in it; we cannot. I do not think they will simply get on the NASDAQ and hope for the best without real evidence to put before them.

Also, if we remain on the Venture Exchange, can you be sure the share price will reach the levels we all wish for; somehow I doubt it but this is just a hunch.

To conclude, I take the view that a reverse split will become essential to maximise shareholder value over time. When it occurs, it will be a sign of impending good news, possibly lots of it. If we want the best return for our investment we will ultimately obliged to play with the big boys. Don’t vote against it, grasp the idea with confidence, for when it happens it augurs greater things.

David.