Also, how was this sort of announcement not price...

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).