Reverse stock splits are often used by companies to lift share prices and comply with exchange listing requirements. While this can be seen as a positive step towards maintaining listing standards, it may also be perceived as a sign of trouble by some investors. The short-term impact on KAVL's stock price could be neutral to positive, as the reduced number of shares could lead to a higher price per share. However, the long-term effect will depend on the company's performance and investor perception.