You are right. Many institutions have rules that prohibit them...

You are right. Many institutions have rules that prohibit them investing in companies whose share price is less than a dollar. One might also think that potential big purchasers would want to know the company they are giving big dollars to is more than a penny stock.

So in fact the directors working on overcoming those handicaps is a very productive use of their time. One might also think that if people have to pony up bigger amounts of money to play with the share price, they might be less inclined to.