Don't confuse a reverse split with a reverse merger. A reverse merger is when a private company goes public by merging into a public shell; typically it's great to be in early because this adds great value to the shell. Think of it as a inexpensive way to IPO.

Reverse split:
http://www.investopedia.com/terms/r/reversesplit.asp

Typically and especially on the OTC the stock's value plummets after a reverse split.