The advantage of the reverse split, for USMJ, is that they can keep the share authorization at 15 billion shares. Then they may have 14.5 billion shares they can continue their massive dilution business model.
After all, now that they announced changing their business to café, they will need tons more cash. They can get the cash they need (like they are doing now) by doing toxic financing notes, which can convert to common shares t 50% or so of the share price. The toxic financiers can then immediately dump to lock-in their profit.
This doesn't help current investors, though, because their percent-ownership of the company is tanking and will really drop by 95% or more after the dilution ramps up after the reverse split.
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