With all do respect, please check your math. You are correct with the 5 for 1 result and based on current sp it would end up being 50 cents post reverse split/ split. This also would be true at post DA at 6 dollars, if management went ahead with the reverse split/ split 5 for 1 that would make it a 30 dollar stock. Share holder equity remains constant only the outstanding number of shares changes, that's it!

I agree a reverse split does have a negative reputation, but that is because the reason most companies do, which is to maintain minimum listing requirements for their exchange. All major exchanges have minimum share prices which must be maintained or corrected within a specific time frame or face delisting. Many companies will do a reverse split to do so but the underlying problems remain and therefore the downward trend of the stock continues.

AL