Yeah the price might fall a bit once the new shares are issued. Depends on what the people who ultimately end up with the issued shares do.
If they end up in HAWK's debtor's hands my guess is they will sell. If they make to the shareholders my guess is some will hold as HAWK and HERO were similiar.
If they don't want the stock they will sell it off and sure the price will go down. This is not an issue for long term holders, more like a temporary opportunity if you still believe in the long theory.