You have to think that the 40 to 1 reduction  was going to happen in conjunction with another event that wasn't announced.  I've seen this before where a company does a share reduction at the same time they list in the USA and the stock is promoted. I suspect that with the proposed financier Director jumping ship the strategy no longer made sense.  I have no inside information but I believe the reduction, the Director and the unannouced event was tied together.

 

There is no point in doing a share reduction unless you have your eggs lined up.  Sure you could do a 10 to 1 and get the share price to 40 cents but without an event, promotion and a sound strategy the stock price could easily fall.

 

I don't buy into all the doom and gloom but think it will be a cold and dark winter.