Baboriley:  "My sense is also that very few stocks that traded in the sub $1 range ever made it to $20 or more, although there are no doubt examples of those that did.  Most hang on for years, but don't go anywhere and eventually fail.  However, if they are among the volatile penny stocks, traders can make decent money on them.

My conclusion is that some who are against an R/S, have been those that have traded the stock (gasp!).

Time to abandon the above era, as we look to have a special stock here. With the potential growth of this company, we eventually may have the volatility desired by some, but at a much higher level. It's all about building the market cap, not about assuring some that they can trade tens and sometimes hundreds of thousands of shares for a few cents gain from time to time.  Time to grow up, like little Jackie Paper finally did."

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OK, I understand the malodor to many regarding a R/S.  No doubt many, if not most, have lost money in a R/S scenario in the past, but in deference to Baboriley's post, part of which is quoted above, it may indeed be "Time to grow up, like little Jackie Paper finally did".

Not all R/S situations have dismal results.  Someone else has listed several examples of R/S situations that worked out fine.  I will confine my list of successful R/S situations to one, another small Canadian Small Cap company that to this day is still "in development", but like POET, it is definitely in transition from development to production.  It went through this process of looking for a better stock exchange and looking to tap a greater amount of US investor interest and money by using the R/S mechanism to achieve those goals.  Here is it's story in a brief summary:

   VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 3, 2017) - Lithium Americas Corp. (TSX:LAC) (OTCQX:LACDF) ("Lithium Americas" or the "Company") announced today that it has applied to list its common shares on the NYSE American stock exchange. In connection with the planned U.S. listing, and as previously authorized by its shareholders, the Company is implementing a consolidation of its outstanding common shares. The Company's board of directors has determined that the consolidation will be effected on the basis of one new common share for every five currently outstanding common shares. The consolidation will take effect on November 8, 2017 and the Company's common shares are expected to commence trading on the Toronto Stock Exchange on a post-consolidation basis beginning at the open of markets on November 8, 2017

In announcing the application to list on a U.S. stock exchange, Lithium America's CEO, Tom Hodgson, commented: "We look forward to a U.S. listing for Lithium Americas. We believe the share consolidation and U.S. listing will improve trading liquidity of our common shares and enable us to broaden our shareholder base."

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So, what was the pre RS common stock share price vs the latest post RS common stock share price?

LAC closed on 7 November 2017 at $9.85 USD as adjusted for the R/S effected the next day, so converting it back to the pre R/S common share price ( the R/S was a 5 shares converted to 1 post R/S ) we would divide the $9.85 by 5 to get the value of 1 pre R/S share at $1.97 at the Close on 7 November 2017 for the "Old" common share value.

At the  Close on its first day of trading the "New", post R/S, shares on 8 November 2017 were at $11.12 USD.  If we look at what that value would have been in terms of Pre R/S value then it would have been $2.22.  So what has happened since then?

The "New" common share price closed at $25.29 on Friday, 29 January 2021.  If we divide that "New" common share price by 5 it gives us the comparitive value for 1 common share before the R/S ( i.e. the "Old" pre R/S Share value) and that value would be:  $5.06, rounded off to the nearest penny.  All USD values.  So for every "Old" common share that an LAC investor had on 7 November 2017 at $1.97 that share now has gained $2.56, rounded off to the nearest penny in today's value in 2021.

Lithium Americas qualified for, and was admitted to, the New York Stock Exchange in January 2018.  In those 3 years since it executed its R/S and subsequently was admitted to the New York Stock Exchange it has gone up in post R/S common stock share value slightly over 156% compared to it's pre R/S Close on 7 November 2017.

LAC has 2 mining areas, one in Argentina and one in Humboldt County, Nevada.  It is important to note that neither of these 2 mines are in production.  Production is to start next year in Argentina and in 2023 or 2024, reports vary, in Nevada.... but they aren't producing much of anything today... same as POET!! 

Imagine what will happen to their share price when they go into actual production... and I am talking about BOTH POET and about LAC.  R/S doesn't have to be a "bad thing".  It all depends on why the company is using the R/S mechanism in the first place.  So, why is POET proposing a R/S play in the near future?  Same reason that LAC did it back 3 years ago and the results will be the same or better, much better since we are talking about POET being a global leader.

Why did LAC, another Canadian "Small Cap", decide to do that November 2017 R/S?   To gain access to a "better" stock exchange and to obtain a greater access to the investment market within the United States.  Same reasoning, I believe, that POET is now in pre-maneuvering to do the same thing, obtain a better stock exchange listing and to gain more attention and investment from investors in the United States.

Yes, R/S does have a certain odor to it in many, if not most, instances, but in the case of the proposed R/S for POET it appears that the "odor" may be more akin to a fine perfume with the same purpose of other perfumes in the cosmetic market:  to attract suitors and break down thier resistance, possibly even to seduce the market place?