Ann: Close Out Of Hedge Position , page-11

Yes, I was wondering about consolidation too. Are the options then consolidated also, with the strike price adjusted accordingly?

Anyway, the main advantage I see of consolidation from current levels is the reduction of tick size as a percentage of SP. At .006, a tick is a 16.67% change either way. Consequently liquidity is reduced. For example, bid is .006 and ask is .007. If I want to sell, I either have to take .006 or take my chance on the bottom of the .007 queue. Worst case it gets like Red Sky (ROG, check it out). There is 129M in the .001 buy line, 54 bidders. They're down 50% for the day on one tick! Good luck getting out there. (disclosure - ROG not held). I would hate to see AYN get to that point.
After a ten to one consolidation, I might be able to get 0.065 instead.