i did a little research i came across this:
imagine if the conversion occured this way:
The theoretical diluted price, ie the price after an increase in the number of shares, can be calculated as
Theoretical Diluted Price = ((O x OP) +(N x IP)) / (O + N) where
O = original number of shares
OP = Current share price
N = number of new shares to be issued
IP = issue price of new shares
For example if there is a 3-for-10 issue, the current price is 50c, the issue price 32c, we have
O = 10, OP = 50c, N = 3, IP = 32c and TDP = ((10x50)+(3x32))/(10+3) = 45.85c
conclusion:as long as the issue price is below the current price...its good for the current shareholder...this is just my guess work...for KPLC i dont know what will happen...source wikipedia.