Trying to come to a real rational understanding of why they may purposefully reduce the number of shares they can be authorise to sell, rather that the usual 'they just want juicy salaries etc.' which doesn't really give us anything except venting, I propose the following idea.
As we know from the Listing Deficiency letter and from my post 2748, the Listing Deficiency was with regards the lines a the bottom of this post, which relate to the amount of stockholders equity. Not share price related as the NYSE American isn't like the Nasdaq with regards a 1 dollar minimum price.
Now one way they may be able to increase stockholder equity is by reducing the number of shares the company has its value spread over. By reducing the number of shares, this automatically increasing the relative equity of the remaining shares. While they cannot directly reduce the number of shares/share value in the open market as those have already been sold, then they can manipulate the total number of shares the company is owned by, by reducing the number unsold internal shares to a lower amount. Also perhaps this reduction of internal shares is also best to combine with a 'reduction' in number of external (in the market) shares, and thus the rationale for the R/S to be around the same time. If the following were to be correct I think this would make a lot more sense with regards mitigating the Listing Deficiency situation, as having that hanging over your head is something bad for any company and good to get rid of asap. If the above understanding is correct then both the application of this internal and external restructuring may be cleverly combined tricks to mitigate the delisting and based on advice from the top-tier financial firm that was hired 2 months agoish.
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(a) Financial Condition and/or Operating Results—The Exchange will normally consider suspending dealings in, or removing from the list, securities of an issuer which:
(i) has stockholders' equity of less than $2,000,000 if such issuer has sustained losses from continuing operations and/or net losses in two of its three most recent fiscal years; or
(ii) has stockholders' equity of less than $4,000,000 if such issuer has sustained losses from continuing operations and/or net losses in three of its four most recent fiscal years; or
(iii) has stockholders' equity of less than $6,000,000 if such issuer has sustained losses from continuing operations and/or net losses in its five most recent fiscal years; or
