"...the portion of the A/S that will be included in the R/S is the portion that is in the O/S."
I take that to mean the A/S remains at the 6.5 billion and it is the O/S that is reverse split, whatever that number is these days. IOW, the A/S STAYS at 6.5 Billion, it does NOT go to 3.535 Billion per your example.