0./
if you want some guidance on which direction to vote, this and this are very good reading in forming the foundations of why you would choose to cast your vote one way or the other for any particular issue.
Although nobody's (yet?) paying ISS or Glass Lewis for advice, here is another PDF worth reading.
on the "hot topic", here is some research to consider.
1./
at least in the US, it seems shareholder "permission" is not a requirement. if the same is true for TSXV, that the BoD is even "asking" lends support for ST's "PlanB" theory.
2./
Anyone with $10 can pull the full text of this article.
One of its findings: "...the market reaction to the reverse split on the ex-date is an important predictor of the likelihood of survival and of survival time. The paper finds that the likelihood of survival also depends on firm size, pre-split firm returns, and the post-split share price level. The paper finds that post-split survival time also depends on firm size, pre-split operating performance as measured by return on assets, pre-split firm returns, leverage, and the post-split share price level."
also, from here ...
" ... we find that the performance of stocks with reverse splits in poor overall stock market conditions is better (less negative) than that in good market conditions, and that the differences in performance appear three to five months after the split. This suggests that the longer-term outcomes of reverse stock splits are associated with the market environment at the time of the split."
as well as from here "We find that liquidity significantly decreases after forward stock splits and significantly increases after reverse splits."
and from here, "the total risk of returns to reverse splitting securities declines after the split, yet systematic risk remains essentially unchanged. In general, securities have negative abnormal stock returns at reverse split announcements, though smaller companies have stronger negative reactions. Companies forced to reverse split have positive wealth effects."
FWIW, I myself need some time to review and consider the material in its entirety, and might share openly how I plan to vote my own shares in the coming days.
GLTA,
R.
PS:
for anyone who smells a spin-off on the horizon, this is long but interesting.
