The good thing nd is that at .003/.004 where the stock is currently trading, it actually won't wipe out the shareholders.
At this sp, a 1:500 R/S will still leave shareholders with blocks of 100 share lots. For a $1000 investment they'd have around 500 shares after the R/S.
Now, at .0001 and a R/S of 1:2500, yes, the current shareholders would get wiped out.
"Give 'em the old Razzle Dazzle.....razzle dazzle 'em"