The share price drop was most likely due to concern over the substantial selling of shares by a large shareholder. I presume this shareholder is the CEO. The indicated number of shares being sold by "a shareholder" would represent half of the shares owned by the CEO, if it is actually him.
Proceeds from the sale of new shares will be used to pay down the credit line which was utilized to buy the company in bankruptcy ($18.5 million in cash paid). I hope this increased liquidity will shrink the market maker's spread. Not only is the spread way to large but attempting to buy or sell as little as 1,000 shares has a huge impact on the price. Until liquidity increases this stock will remain a non-institution stock that can be bought in only 1,000 share lots and cannot be traded.