When a stock has sunk to
.01 or
.005 there are always people willing to bet some gambling money that the stock has 'reached the bottom', so it tends to hang there; a reverse split (or more correctly 'consolidation') removes that market, so the stock tends to sink lower. After that, it just depends on the fortunes of the company.

There is one somewhat different situation however: when a stock is doing so well that it gets promoted to the TSX instead of the venture, a consolidation may be required to meet the listing requirements. This kind of stock will not suffer in the same way.