Ann: Voluntary Suspension-ODN.AX, page-48

First 48 Last

Share
Profile

Follow
serena

10,370 Posts.

222

21/07/16

11:44

Post #: 18326131
Share

Originally posted by Blommer ↑

My assertion was that higher consolidation ratio will make the CR more attractive. This means we agree with each other on this point, as the reason it makes the CR more attractive is that higher conosl means CR participants receive more, ODN holder receive less.

Size of the pie is the same whatever the consol ratio, the ratio serves to determine how much pie ODN gets.

Since the consol ratio, for most reasonable values, doesn't change very significantly the total shares on issue (most shares are not consolidated), the SP after the new GRD entity is launched isn't very significantly effected by the ratio.

What do I mean by not very? That the effect is small compared to the consol ratio. A 10x consol ratio will not have a 10x effect on the price. More like a 1.1x effect on the price.

- ie For whatever consol ratio:
the pie/Market cap/ Value of gridComm is still the same size.This is certain.
But so are the number of slices/number of shares.
As is the size of a slice/share price - roughly speaking.

Expand

Higher consolidation ratio will make available shares for trading will be less liquid.

Current shares outstanding is around 570 million. If the consolidation ratio is 10:1, the available shares for trading after consolidation will be around 57 million with the assumption that shares to be given to ex gridComm shareholders will be put on escrow or they will not sell their shares.

ODN Price at posting: 1.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

Trimmed CPI figure provokes market jump of 1%, but inflation pressures remain a reality

MRC

Mineral Commodities to shut down Tormin mineral sands project as oil spill contaminates beach

1CG

One Click Group jumps 4% after ending quarter with $2.4M in cash; $1M in revenue and 150K+ users on board

MGU

New results confirm Buena Vista's iron grades potential

KOB

Koba, formerly a cobalt player, gears up to become newest explorer in the uranium state: South Australia

There are more pages in this discussion • 35 more messages in this thread...

First 48 Last

Add ODN (ASX) to my watchlist

Ann: Voluntary Suspension-ODN.AX, page-48

Top Stories

Trimmed CPI figure provokes market jump of 1%, but inflation pressures remain a reality

Mineral Commodities to shut down Tormin mineral sands project as oil spill contaminates beach

One Click Group jumps 4% after ending quarter with $2.4M in cash; $1M in revenue and 150K+ users on board

New results confirm Buena Vista's iron grades potential

Koba, formerly a cobalt player, gears up to become newest explorer in the uranium state: South Australia

Featured News