You know, your analysis is very interesting. I re-read the disclosure and agree 100% with your analysis.
The debt was created during SBRH days, not as a part of the merger or by NVOB. Clearly they want to get rid of the shares and complete the 1000:1 split.
But they want Mark gone. So they give him 30% up front and agree to pay off the rest and hold his shares in escrow.
The escrowed shares which are not to be reverse split, since they were never part of the float and are to be retired completely. This is the key point, as I believe that until that is done, they can't reduce the authorized shares from 5B. This is why the DTC chill is still in effect....IMO.
They need to pay off Mark and then retire the preferred shares to then finalize the split, reduce the share structure and then move the company forward.
Wow....this stock is going to fly!