what is this prospectus all about

I am trying to understand what OLE is doing.
They have released a prospectus today that says they are doing a CR @$0.20. There is also a mention that there will be a share consolidation of 80:1 based on the share price of $0.0025. How can this happen when the shares are currently at $0.004 ?
This seems like they just stripped 40% of the share value and for existing holders we get shafted.
I must admit this is my first time dealing with such a situation, but would I not be better to sell at 0.004 than go through the CR/consolidation ?
What is anyone else's take on this ?