Myratech-Net will hit 300%++++

Can anyone work out what this means? I mean, if this is necessary, then why such a large share consolidation?

"To enable the New Ordinary Shares to be issued to satisfy the consideration for the Acquisition and to facilitate the Placing, the Company also needs to increase its authorised share capital, increase the number of New Ordinary Shares it may allot and increase the number of New Ordinary Shares it may allot for cash, other than to existing Shareholders on a pro rata basis to their existing holdings. To allow these increases to be made, the Company will seek Shareholders' approval of Resolution 1 to be proposed at the Extraordinary General Meeting."