I see several points here with that paragraph:-
On the 1st issue it would be great not to have an extra 58m shares hitting the tape but that means we also wouldn't have the proceeds from the sale of those 58m shares on the balance sheet. Even with those 58m shares added to the current O/S there would still be additional shares available in the A/S for further issuances, ie the A/S would remain at 400m and the O/S would increase to 373m.
On the second issue, I don't see either of the first 2 suggestions being used because highering the A/S would signal intention of more dilution so bad for the pps and therefore harder to uplist. I've also never heard or seen any Note holder or Warrant holder allow notes or warrants to be cancelled unless there is significant upside for themselves to be had, aka more downside for the company. Finally and more disturbingly, the phrases "having unreserved shares sufficient for all outstanding options to be exercised". and "shareholder approved reverse stock split." fills me with dread because that to me says that any R/S would just be for the O/S and the A/S would remain the same! I would view that as bad for shareholders and a big enough red flag to me to get out in the short term.
I personally would like to see an integration of both ideas.
1) Let all Officers and employee options and warrants convert increasing cash in the balance sheet and increasing the O/S to 373m
2) At the company convenience (ASAP) R/S the O/S AND A/S AND any other options/warrants outstanding with a minimal number (1-10) to uplist, dependent on pps at the time.
3) Simultaneously prepare several blockbuster pr's detailing contracts, revenue projections etc to be released upon and soon after the R/S and uplisting to attract the larger institutional investors.
All constructive comments, alternative points of view are welcome as this is just my opinion.
IT'S BETTER TO TRY AND FAIL....THAN FAIL TO TRY! NEVER GIVE UP 
