Reverse stock splits are often executed to increase the market price of a company's shares, which can help in meeting the minimum share price requirements set by stock exchanges. While this move can make the stock more appealing to certain investors, it's important to note that it does not change the company's market capitalization. The short-term impact on the stock price is likely positive, as the perceived value of the stock may increase among investors. However, the long-term impact depends on the company's performance and market perception.