I'm not going to try to second guess much at this stage. As with...

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Paul12

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26/08/21

14:03

Post #: 55593892
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Originally posted by Elementary: ↑

I think a share consolidation is a good thing. Certainly have seen in the past share consolidations having a bit of a negative affect and it usually takes some time to gain momentum again, but not in every case. However that was with companies who have assets and trading under relative normal circumstances.
Coming out of the proposed sale, we will have a new name and no projects and cash in the bank. In affect, a new company. What better time to do a consolidation. It seems management will be looking for new projects and depending what they are and at what stage of their exploration or mine lives the are, ( assuming its in the mining space ), we may need some capitol raising at some point in the future. So would you prefer diluting what we have even further or diluting a share register far less than what's on the books now. Certainly would be more attractive for institutions with a smaller share register. Makes good commercial sense to me. But it is way above my pay grade....
A 10:1 share consolidation will in effect turn our current share price of .07 into .70. We are not making any more as suggested above as we will have less shares each. Once we are trading again, the share price will no doubt drop. Whether it is at .07 or .70, the nett affect will be the same.

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I'm not going to try to second guess much at this stage. As with any other company on the ASX, it's going to be up to MYL to convince me as to why I keep my investment with them. I don't know if they do or do not have anything being planned going forward, but I don't believe they could canvass any of that before they know where they stand. The resolutions would need to be passed, and the cash would need to hit the bank...cart/horse. After that, they would be in a position to present whatever options they may have, but likely not before.

MYL Price at posting: 7.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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