Pe rhaps we are talking at cross purposes. To me, dilution means that my percentage ownership of the company(or the company's market value - if you will) will decrease. This happens with private placements, issuance of options - when new shares are printed by the company to cover. Splits - reverse or otherwise- are not dilutive. If a company has a thousand shares outstanding and I own 100 shares - I own 10% of the company -at whatever it is valued at. If, as in this case there is a 1:5 reverse split - the company will have 200 shares oustanding and I will own 20 shares - for the same 10% ownership. The value of my position remains unchanged relative to the value of the company. I only get diluted if the company issues more shares to add to the float.