memo of understanding, page-28

hi kershads,

"Given that is true then in my SIR example surely it would have been better to have had 1,000,000 shares at .017 cents and got hit with a 20 to 1 consolidation that reduced the holding to 50000 at .33 cents than to have had 100,000 at .017 cents with a reduced holding of 5000 at .33 cents (after consolidation). The initial price would have been 10 times higher but I would have made more profit when the shares reached say $1 (i.e. 50,000 versus 5,000)...minus initial outlays of course."

to have 1,000,000 or 100,000 shares at .017 cents means you outlay $17,000 or $1700

The share consolidation would still mean you would have $17,000 or $1700.

After a 20 to 1 consolidation any 20cent increase is equivalent to a 1cent increase pre consolidation.

The price rising 20cents post consol or 1 cent pre consolidation is still going to increase the market cap by the same value.
Therefor there is no leverage issue.
The only leverage you get is by the value you spend $17000 compared to $1700. Not the amount of shares you get pre or post consolidation..

Cheers