If the market would be willing to assign a higher value for another share structure, that would be fine. But it won't. It will see through any smoke and mirrors and will decide that there is $1.25b in value. Period. I'd personally go with things that make me better off. But why aim to create faux value here, when prospects are great as is?
Your scenario way overcomplicates things. I can't comprehend the amount of confusion here, on what appear to be fairly straightforward issues or Press Releases. What would you assume will happen if they choose a road less travelled and opt for a solution that defies conventional finance wisdom?
They have a big credibility issue as is, and most anyone would scream foul play.