announcement very bad, page-2

Also, how was this sort of announcement not price sensitive?

Surely the fact that you are cutting everyones share of the business by 2/3 at an issue price that is 75% below what is the last traded price would be considered "sensitive"?

These guys should be in jail for this. Why wouldnt you just sell the business (should at least get $3 - $5 mil)rather than cut the existing value to the equivalent of $1.8mil (shares now times 1c).