all in favour of consolidation?, page-15

Well Canaccord don't seem to agree with you,this has just been posted on there website LUCAPA DIAMOND COMPANY – SUCCESSFUL RAISING
We have previously mentioned Lucapa (LOM), believing it to be one of the most exciting quality diamond situations seen in decades. If offers a combination of alluvial diamond production and hard rock kimberlite exploration potential, in the highly productive Angolan diamond fields. (Canaccord released research in March, which is available upon request).

During the week Canaccord led a successful $5.5m placement for LOM, placing it in a strong position to step-up operations as the wet season is coming to an end. News from production and exploration will add to market interest, as will news on the status of the licences. If the Company’s projects are as good as we believe, we should see very strong share price performance over the coming months.

The differentiating factor about diamond companies is that share price movements are more dependent upon operational performance and the meeting of expectations as opposed to commodity price trends. Diamond stocks can perform even when the rest of the mining sector is depressed.

An important element of the capital raising was the commitment of the Company to undertake a consolidation of its share structure. The Lucapa share price has been dominated by day-traders for too long. It has been too tempting for these traders to buy at 0.6¢ and immediately get into the queue and place a sell order at 0.7¢. Each tick in the price has been too large, percentage wise. With a 30:1 consolidation the adjusted price will be around 21¢. The number one criticism – that there are too many shares – will soon be irrelevant. A more respectable share price will also be material in attracting better support from international investors. The associated loyalty option will be a sweetener for shareholders who stay on the register.