My beliefs and guesses for whatever they're worth:
1. It would have been better Investor Relations tactics with shareholders to issue a press release BEFORE the Board vote and BEFORE the SEC filing indicating that the actions contemplated by the SEC filing were about to be voted on by the Board and were being proposed for whatever reasons that these actions are actually being taken.
2. I believe that the "sleeper" in the change in authorized shares is to authorize preferred stock (this may be at least as significant and possibly more significant in the increase in authorized common shares). Preferred stock is a way to offer a sweetener when taking on debt, working much the same way that conversion privilege into common stock often works, which is to reduce the interest rate demanded by the lender.
3. I would not believe that a forward split would lead to an increase in the value of one's holdings when the price per share is already in the single digits. Just a belief here that no one would feel better about holding a million shares valued at two cents per share than holding 500,000 shares valued at four cents each. I may be wrong as I'm nothing near an expert in any segment of the market, but especially this segment.
4. Overall, I believe that what this is mostly about is creating the ability to turn some of the current debt into equity, thus making the company less leveraged. "Less leveraged" is the positive other side of the coin from "dilution." What this means to me is that the company now has a much better chance than ever of surviving, and this would sooner or later increase the price/earnings multiple applied to its stock price(as risk has been reduced). In return for having a better chance to do well in the long term, what is sacrificed is some volatility in earnings (and stock price). So the upside is sacrificed somewhat in return for improving the chances that the company will be around for the long run.
If this is too wordy or redundant or unfortunately d(and without intention!) has come across as disrespectful to anyone else's beliefs, I ask your forgiveness. I'm only trying to do what all of you are doing now, which is trying to fill in the blanks that now exist in the absence of an explanatory press release,
