razorback74, the 5,000,000 S-8 shares were all free-trading as of Friday and can only be used to pay insiders and consultants. They cannot use them to buy groceries or put gas in the car so they must be sold into the market to be worth anything.
It is more likely that the S-8 shares come to market in the current .20-.30 range while shares held through the Reverse Split are still tied up.