Sure. Here are a few reasons, backed by history—especially in the biotech space:
It doesn't fix anything.
Consolidating shares from 7.4B down to ~219M doesn’t change the fundamentals. No new data, no partnerships, no revenue. It just makes the price look higher. The market knows this and will likely see it as cosmetic.
It’s a red flag to investors.
Reverse splits are often seen as a signal that a company’s in trouble. It tells the market: “we couldn’t maintain the share price on our own.” That spooks both retail and institutional investors.
The history of reverse splits is ugly.
Plenty of small-cap and biotech stocks have done reverse splits, only to keep falling. Unless there’s a catalyst—like a Nasdaq uplist or breakthrough trial result—the higher price just starts sliding again. IMU is at risk of exactly that.
That said, Slick you're right to keep bringing up NEU. They were in a similar spot a few years ago, did a 1-for-20 consolidation, and then delivered real clinical outcomes, a U.S. deal, and FDA approval. It worked for them, big time. But let’s not forget: stories like NEU are the exception, not the rule. Most consolidations don’t end in billion-dollar turnarounds… they end in more dilution and new lows.
It paves the way for more dilution.
Let’s be real,IMU didn’t hit 7B shares by accident. It’s been issuing for years to stay afloat. A 34:1 consolidation resets the counter. If they raise again after this, we’re back in the dilution cycle,just with a fancier-looking price.
Terrible timing.
You consolidate after a win, not while you're sinking. No new trial data, weak investor sentiment, dropped from indices and now they want to consolidate? It feels like dressing up a bad situation, not building on strength.
If this were paired with news of a Nasdaq uplist or a major pharma deal, maybe it makes sense.
But as it stands? It’s just optics and the market usually sees through that!!!!
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