This is one of the clearest announcements I have ever read.
I think it was written and marked price sensitive by the ASX out of pure surprise over the price and volume action yesterday.
Given the size of the consolidation, along with the amount of value that will be attributed to shareholders post consolidation, the pump yesterday was almost inconceivable and given the high number of retail investors, both the company and ASX must have beloved the announcement was misunderstood and needed clarification.
They even give an example
1 For example, a shareholder currently holding 100,000 shares would hold 1,000 shares after giving effect to the proposed share consolidation.
2 For example, the 13.7 million shares that traded on 28 November 2017 currently represent 3.9% of shares on issue. Assuming the recapitalisation and share consolidation resolutions are passed at the AGM, these shares will become ~137,000 shares and represent a ~0.2% interest in the post-recapitalisation Company.
In a nutshell, they are stunned that the share price is above 0.1c let alone rallying 30%+ to 5.2c.
As are most of the rest of us.
Milesy
SGH Price at posting:
5.2¢ Sentiment: Sell Disclosure: Not Held
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