Reverse splits are generally a kick in the nuts.

However, there is the odd time that it makes sense. The only three reasons I can think of, off the top of my head:

1. A lot of funds are not allowed to invest in stocks under a certain share price, to keep them out of penny stocks. However, that is generally $3 to $5, I think, so that is probably not the rationale here.

2. At today's price, that puts us very close to the same value as Noront's. Maybe some sort of share swap is in the cards, or they're make it easier for Noront to take a run at SPQ?

3. TSX listing requires minimum $1 trading for 30 days, among other things. Maybe they want to migrate up from the Venture?