Investor Call 9 August 2024, page-102

Hi everyone
I’m a new investor in FBR. A little worried about people’s reaction to consolidation.

I put this in to chat GPT and I’m interested to hear peoples thoughts on it…it sounds like it it could be a good thing if perceived well. Please educate me if I’m wrong.

Why would management of company FBR listed on the asx think consolidating shares would be advantageous to its progress? The company is not struggling and is about to break into the American market. Is there a scenario where retail investors benefit from such an action? Is there a potential catalyst that would be helpful?

**Advantages of Share Consolidation for FBR:

**1. **Improved Perception:** A higher share price can improve the company’s image among institutional investors and the broader market, as a higher share price is often perceived as a sign of a more stable and mature company.2. **Attracting Institutional Investors:** Some institutional investors have policies that prevent them from investing in stocks below a certain price. By consolidating shares, FBR may attract these investors, potentially leading to increased demand and higher share prices.3. **Reduced Volatility:** Higher-priced shares tend to be less volatile. A share consolidation can reduce the daily price swings, making the stock less speculative and more attractive to conservative investors.4. **Preparation for Market Entry:** As FBR is about to enter the American market, a higher share price might be favorable for listing on a major exchange such as the NASDAQ or NYSE, which have minimum share price requirements.**Potential Benefits to Retail Investors:**1. **Increased Share Price:** If the consolidation is perceived positively by the market, the share price may increase post-consolidation, potentially leading to capital gains for existing shareholders.2. **Better Market Perception:** Improved market perception can lead to increased investor confidence, potentially driving up the share price further.3. **Attraction of Institutional Investors:** The entry of institutional investors can provide price stability and potentially increase the share price due to higher demand.**Potential Catalysts:**1. **American Market Entry:** Successfully entering the American market can serve as a major catalyst, bringing in new revenue streams and increasing global visibility.2. **Strategic Partnerships or Acquisitions:** Announcing strategic partnerships or acquisitions in the American market can boost investor confidence and positively impact the share price.3. **Technological Advancements or Product Launches:** Innovations or new product launches that demonstrate the company's growth potential can attract investor interest and drive up the share price.In summary, while share consolidation can initially seem neutral or even negative to retail investors, it can set the stage for significant benefits if it leads to improved market perception, attracts institutional investors, and coincides with strategic business developments.