It dosn't make sence your right but I will tell you the company will take advantage it and roll the common shareholder into bond holders were it is the one who spends the most capital regardless of the number of shares owned tomorrow at your predicted $.001.
There will be a mark to market on the liability and the second wave of investors will enter the arena to play.
There is a lot more of a social structure then many would think to the capital market but should you ride it down you will get your 5% return on a yearly bases while you wait your turn on the shelf as it is refered too.
What the company captures back will be cancelled andthe liability lowered further allowing more room for debt and growth because of the manipulation of the debt.
Should one wait it out and recieve shares then I would short the company and use those shares to protect your short position as I'm doing now.
A stock reversal is not what a lot would think it is. It is a forward spliting of the shares with the borowing of shares by the company for the purpose of shorting that represents now at 30% by the company that is required to report there short position.