It all depends on the intentions of management. If they wholeheartedly intend to grow the company and reward the investors, then yes, the A/S would be reduced accordingly and this would help convince current and potential investors that dilution will be kept to a minimum. Unfortunately most pennies use the R/S to reposition the PPS to further dilute as a cyclical religious form of toxic financing and thus do not simultaneously reduce the A/S. I do hope GZFX can make it without any of these scenarios, but unfortunately JF is proving otherwise.