There is no reason for stock price to drop after a reverse split UNLESS there is remaining debt to be converted. Otherwise, your stock just increases in value by the ratio. Why would it go down if it was not being diluted? It wouldn't except for the ongoing believe that all reverse splits are bad and thus uninformed traders dumping post R/S. They are not all bad, but some are.
If the company wants to reduce the AS, they have to get the OS small enough to survive the reduction. Reducing an AS is simply making less shares available. Reducing the OS, means either buying shares back at market, or doing a RS. Obviously, a company that is already in debt can't buy its shares back, particularly if there is a dilutive debtor remaining. The company would be buying their own stock at market price, then giving it away at a discount for a debtor. Yes, that would make sense. Lose a little in every deal, but make it up in volume.
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