"Could this be any more stupid and destructive?"

I have to agree, noting that a reverse split following news of a partnership would be less destructive of shareholder interests. It would be based on a higher overall value for the company.  That is, fewer reverse split shares would have to be issued to achieve the same end.  

This does not suggest that no deal is forthcoming, just that one may not be coming soon.

...all speculation at this point.  Only BG knows what he's doing, maybe.