If you think of taking a wash (loss credit) as a no-cost company buyback program (in effect, it lowers the O/S), that should also give a boost to the worth of the remaining O/S should, for example, the company was granted an $8.2M order 'paid in full in advance' contract for goods to provided as produced.
The effect would be a surge in the pps for remaining shares. I too would say that would be the right thing to do....increase pps of remaining LAHO shares accordingly.