1. I am a beginner :)Can someone tell me what this means...

1. I am a beginner :)

Can someone tell me what this means please.
OK, I bought TIR at 13.5
It then settled to 11.0
Company then released info about a 1 for 1 share release at a sale price of 3 cents per share. I don't understand how they can do this since my current shares are valued at 11.0 cents.
Does this mean that on the release date, that all my shares will only be worth 3 cents?
With info like this released to the market, does it mean that the response by punters will be the same as when dividends are due to be released, ie a big buyup?