Many expect it to work out like that, but what is really the case, is that a stock dividend is actually a forward split in disguise. The value of the company remains the same, but now everyone will own twice as many shares to make up that value.
A realistic expectation is that the shares will be worth 1/2 of what they are today.
There will be other problems as well with the delivery of these new shares. Some will be waiting weeks, maybe even over a month for delivery while the PPS fizzles. People will justify the drop due to the 'divy sellers' and claim they are loading up at these new low, unimaginable prices.
The company will blame the TA for the delay, the TA will blame the market regulators for not issuing the new shares in a timely fashion.
I've seen this exact scenario play out on several other Hayter shells, and the result has always been the same, so I have no reason to believe it will be any different this time. The latest example is PRSU who claimed in PR after PR that it was a dividend and not a forward split. If you read back on the market PRs, you will see it was treated as a forward split in the end. It should also be noted that PRSU was 0.03 before the split, and now only 0.0013.
Every single share in the company gets multiplied by 2 now. Restricted, preferred, common, and whatever is in the treasury. Clayton just put a big fat ceiling on the stock price. If anyone thought is was tough getting over a dime before, consider how hard it will be with double the shares to move, and more panic sellers in a race to see some sort of gain from this.
Best of luck.
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