The share price is now quite in tune with your calculations of reduction in capital.  It means each share will entitle the shareholder 55 cents, same as current price which has been adjusted by the market though it might or might not reflect the real value per share since one has to take a look at the assets first to say which is which.

Cap reduction does not mean closing down a company. After the cap reduction, life returns to normal except the share is backed by lesser assets. Some listed company's share are backed by nothing or even negative values. On subseqent closing down,  the shareholders will get money if there is a balance after all cash and cash equivalent assets and are squared off  with the liabilities.