You're overlooking a key distinction. In some reverse mergers, the public shell is actively traded; this was the case with the FHAL shell. However, many public shells are dormant; they have either never traded or haven't done so for a period of time. There are no market makers registered to trade the stock. When these dormant shells start to trade, they have to open somewhere. This is where the paragraph you quoted comes in:
Once a Reverse Merger is completed, a broker/dealer must decide to make a public market in the stock. The market makers, in conjunction with the company, can determine the initial price for the stock. Perceived value, track record and potential growth of the company usually have more to do with initial pricing than earnings multiples and current book values.
Again, FHAL was not a dormant shell. There were market makers making a market in the shares and a trading price had already been established when the reverse merger occured. The paragraph simply doesn't apply to CSHD.
FHAL was around .10 prior to the merger. After the news was announced, market participants including market makers and individual traders bid up the price of the stock. That was the "reset".
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