Seems it comes down to market's perception of mngt and the company. Banro has only so much cash before it will need to tap yet another source. If higher POG is not that source then an offering of stock for cash capital seems most readily available. A 3:1 or even 4:1 reverse consolidation makes sense without further dilution plans. A 10:1 to give just over 100 million shares after reverse seems to convey strategy of further dilution as a funding option, and likely so. Baiyin CEO with his insider information selling 575,000 personal shares, wow seems like a money grabbing F you. Is Lu's selling, as from the head of the Chinese company as central to Banro's Recapitalization, is his personal selling going to garner confidence of mngt to the market?.
As for share price upon dilution, yeah, usually goes lower. Above 0.50 or so post Reverse keeps them listed, market cap wise.
