This was the same question that was asked from Seventeen and a very appropriate question in a PM and since It was directed to me and answered by me, I feel I will post my response in public domain.
Hi seventeen,
That is a very appropriate question.
There are a couple of reason why they did it this way for such a large split. One reason, they wanted to wipeout the blotted shares to almost nothing, may come from forces that will provide financial loan through a Equity Financial package. This simple means, we as shareholders, can assume that diluting the pool will greatly increase the O/S going forward. If the company didn't allow for such a drastic split in the post-split, this would leave a O/S in the amount of 500m without even one share issued for the Equity Finance Program, therefore, once the loan for shares kick in, there will be a greater and much faster increase in the O/S towards a 1b.
Also, the drastic split allows for a maximum share price in the post-split, whereas, if the split was much less, the share price would have been in the area of just a penny and once dilution sets in, the share price would drag down to under a penny and that would be a dangerous area, since once the share price moves into 000x the perception will make it much more difficult to bring it out of sub-penny terrain.
Not to mention, I think the company wants to trade on the OTC and it must maintain in the penny range before getting delisted into the OTCBB and once again it becomes a pinksheet stock without all the unregulated pitfalls that is so prevalent in the penny arcade.
Of course there are other reasons that can hamper a much less split as with merger talks and desires of potentially new investors that require warrants and preferred and the potential new acquirer would get stock within merger negotiations. These new events may have put strict no-sense options on Troy to cave towards these entities before final deals are inked.
Of course these are my theories only
Have a good day
Varok
AI
Market Data 
Markets 
