Dont know how many times it needs to be said, but consolidation does not help shareholders.
Really a red flag for me. The reasons for consolidations are to raise more, so looking like they are lining up for another CR, with the cash burn rate and consolidation coming:
For shareholders it almost always works out worse, cant think of an example of it working out well, infact I challenge anyone reading this to find an example of a consolidation not leading to lower prices, hard to find even 1 example , but plenty of recent examples of it working out bad.
Check out recent ones WSI, ZLD, MOM, MDC, NUH, Ci1, TPD all these consolidations lead to new all time lows. Really no reason for it, just takes up time and money in admin, gives the share price more room to fall, and also allows management to do a cap raises.
Its amazing how many stocks right now you can just copy and paste the same story, management raising and paying themselves great salaries, whilst share price constantly declines, they raise again, until there are so many SOI , then they consolidate and name change and do the whole story again, and people forget about this history. This is how majority of ASX directors and CEOs make their money, if you ever meet one at a dinner party, probably doing everyone a favour chucking a drink in their face.
Usually all resolutions go through, probably a good idea to get out prior to consolidation and pick them up post consolidation a lot cheaper post consolidation, if you even want to get into this mess again.
(20min delay)