Consolidation keeps the company from getting delisted. Consolidation will result in attractive price that may attract institutional investors. Consolidation makes their book-keeping easier.
Consolidation is operationally cost saving.
The drawback of consolidation is..it sends a signal to investors that the company is struggling..hence, they start panic selling causing the price to drop.

You guys make it sound like "consolidation" is a bad thing. It is not. Consolidation is a good thing. Good for the company and good for shareholders. You may have fewer shares but the value of your shares are worth more. But it is when shareholders who do not understand the purpose of consolidation start selling off their shares that bring the price down.