Ann: Notice of General Meeting, page-138

It's simple.

3 directors are spending qtr of a million each to buy more shares in XPE. That is a vote of confidence if ever there was one.

Plus they are going to sell shares worth $7.5M to a big cornerstone investor, in the next 6 months. A vote of confidence from 'outside' the company.

Consolidation.
A consolidation is usually a warning sign, but I honestly think they are trying to stay away from the single pips under 1c. If they sell over 8million bucks worth of shares at 2c or less its 400million shares plus and the SP will get dangerously close to 1c and single pip territory. That is just certain death if your tempting the big funds to buy in. A SP at .008c is just plain out ignored. So they want the SP back towards 5c, which is why only a 2 for 1 consolidation. Of course they could have consolidated harder at 10 to 1, but it pisses people off.

Manipulation.
Yes, consolidating at 100 to 1 (2c to $2) would have gotten rid of the manipulator I reckon. But not going to happen. They are stuck with the toad now, who will dissappear with a profit when the revenue arrives.

I think the directors are very confident of what is going to happen in the next year and maybe Telink or ASE or another also wants a bigger part of it.