Ann: Application for quotation of securities - CHM, page-14

To give a bit of further context, here is the stats of trading history for the last 12 months of CHM:



You can see the total volume traded for the last 6 months was 449 million.

Thats pretty much everyone taking losses, maybe few traders making some money, but vast majority of volume is people taking losses.

Whats going to happen now, when you have "625 million share at $0.008 per share. coming on market. In addition to the shares, investors will receive a free-attaching options that can be exercised at $0.008 and expires 12 months from grant date."

Meaning in you will have people in profit above 0.008. 625 million shares already issued, thats more volume that was traded in the last 6 months when people were losing, now there will be people in profit at 0.0085 and above its going to be hard to get over 0.09- 1 cent with people eager to grab some profit.

Add the options in above as well, and you will have 1.25 billion shares in profit anything above 0.008. Thats more volume than was traded the whole year.

This massive overhang is going to make it extremely difficult for the price to get above $0.009–$0.01 over the next 12 months imo. Even if it does, any rally will likely face heavy selling as holders lock in profits.

On top of that, the company will likely need to raise more capital within the next year mainly to pay themselves. Combine that with the looming potential for a consolidation and it paints a challenging picture for the share price.

Bottom line: With the dilution from new shares and options, plus the need for additional funding, I’d be very surprised to see this stock hold above $0.01 anytime soon. A consolidation and another raise seem almost inevitable.