Reverse stock splits are often used by companies to lift share prices and comply with exchange listing requirements. While this can initially be seen as a positive move to create a more appealing share price, investor perception can be mixed as it also indicates that the company has been under pricing pressure. The short-term impact is likely to be positive as the reduced number of shares should lead to a higher price per share, but the long-term effect will depend on the company's performance and investor sentiment.