To further refine that line of thinking, POET Technologies will announce one or more partnerships before applying for a Nasdaq listing. Peter Copetti has been quoted here often with his famous "I would never go to the Nasdaq unless I had real partnerships in place."

Okay, now let's assume partnerships are announced and the share price responds positively. But let's further assume it does not respond as positively as it should, but stalls at USD 6 or so. Could it be maintained above the USD 5 limit for 90 trading days? Well, perhaps. But it would take a drop by only 17 % to get below the limit, and given POET's volatility that is a considerable risk and not unlikely at all.

Here an RS would help. If the post-partnership share price is at the USD 6 level, an RS would optically change it to USD 12 or USD 18, respectively. This would give us a comfortable margin: A drop by 17 % would leave us at USD 10.44 resp. USD 15.66 – way above the USD 5 limit.

On the other hand, if the post-partnership share price would climb to USD 12 or 18 self-propelled, an RS would not be needed.