Raise the AS to compensate the company if necessary, but the RS is a bad move. Not sure if we get that, but I am trying and I believe others are as well. I think a 2:1 would be ok too as it would leave ~12mm shares in the public float (assuming they kept the 100mm shares issued to the company).
They got bad advice from someone either internally or externally. It happens, but the mistake can be corrected.
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