It doesn't make sense to me. If they wanted to reduce shares on...

It doesn't make sense to me. If they wanted to reduce shares on issue, then they would have raised less money at $5 and issued less shares. Announcing this would most likely lead to concentrated attack by shorters, who could then put the company under financial stress by making them use funds to prop up the share instead of driving the business forward. Eventually this would lead to raising further funds, at a discounted price that would have a downward effect on the price. It would play into their hands.

As a long term holder, this would be a huge red flag for me to get out. The company needs to focus on what they do, not the share price. Games will be played, but long term good business fundamentals will trump the day. If the company stays focused on delivering their product, no amount of manipulation will be able to restrain it. We are in a particularly strong position with so much money in the bank and a CEO who only spends money on a needs basis ensuring it lasts. Cash in the bank is like a vaccine against manipulation. It allows us to ride out the games which can only be played for so long. If you present an opportunity to destroy that vaccine then the company will surely end up is a sick place.

Just my thoughts.