If you are able to talk to him again, ask him what's going on. To me the combination of the reduction in OS and the reverse stock split shows a desire to make the stock more attractive for investors with higher priced shares and to possibly get on a NYSE or other exchange. It seems they have too much work put in to just FUBAR this. They would be hurting themselves mostly from any negative consequences of this split. Also, think about it, you have 2.4B shares at miniscule prices...how are you going to attract capital? Issuing new shares, right? Well, that will get you hardly anything and that actually dilutes the stock. So, what if you reduce the number of shares outstanding from 2.4B to 9Million!? Any new issuance after that will garner much more capital. I'm new to this penny stock game, but have an MBA in Port. Mgmt and Securities Analysis and this seems like what they are doing. Could be totally wrong, but after following this company for a while, there is more to this company than a charade.