Actually the 20-1 must be a typo since the split refers to "90 million shares and the numbers only work at 10-1. It would have to be 45 million shares @ 20-1. This offering RS does a few very positive things for shareholders.
A. It lowers the float and kills all naked shorts
B. It is basically non dilutive if you exercise all your options.
Here's a quote from Mkuedel, a very sharp Neph long over on the Yahoo boards.
"If the shorts want in, they have to first cover their "fake/naked shorts", then they have to buy REAL shares, that oh by the way, there's a shortage of since none of us have been selling. This creates demand for the shares we hold, because each share is now worth 5.2 shares for a small price (.02 for each additional share). After the R/S, you'll effectively have 1/2 the shares your holding now, but the other 1/2 of your shares will still be available to you as a .09 warrant (at 1.2 warrants per share you own after the split). This is absolutely brilliant Wall Street/Hedge Fund financing at it's finest, and you actually have a chance to participate. "
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