Post consol holding, page-28

@Gladiator2

Sorry to be a pain but I'm not sure I follow...how is it that the company can decide at what price the consol would be completed at? If they could do so, why not choose $500? As far as I understand the market rules, the company themselves have no direct control over share price, apart from if they were to issue more shares.

EG. Consider a 5:1 share split. If I owned 100 shares at $1.00 (Market Cap $100), then post-split I would own 500 shares. Nothing has changed fundamentally with the company meaning the value remains constant. Therefore you should expect a resulting price of $0.20 per share. (Market Cap $100) In that example the company has no bearing on the price...but I can't picture the analogous effects with respect to a consolidation.

Sorry if I'm missing something obvious, but am trying to learn as much as possible and I have been following your posts for a while and you seem switched on.