ATH alterity therapeutics limited

Yeah thats the another brutal thing about this raise....

  1. 8,254 Posts.
    lightbulb Created with Sketch. 3240
    Yeah thats the another brutal thing about this raise. Consolidation going to be on the cards, just a question of when really at this point.

    Not only has 40% of the company been taking from holders at a low price of 1.1 cent, we will be diluted by 3.6 billion shares, leaving a total after all said and done of 9.1 bill shares. So I do expect an announcement of consolidation as well.

    Consolidation doesn’t end well for holders, and the odds are stacked against you. Plain and simple: it leads to a lower market cap with NO upside for shareholders.

    Every single time there's a consolidation, you can bet the stock will be cheaper immediately after. Let’s say ATH does a 10-for-1 consolidation. The stock’s trading at 0.011]now, and after the consolidation, iit should be priced around 11 cents to keep the same market cap. But—and here’s the kicker—you can absolutely count on the fact that you’ll be able to pick it up under 11 cents post-consolidation. This happens every single time. Thousands of examples exist—consolidations that lead to lower prices straight afterward. In fact, I challenge anyone to show me even one example where a consolidation doesn’t result in a dip. You’ll be hard-pressed to find one, but the market is littered with failures.

    Take a look at some recent examples: WSI, ZLD, MOM, MDC, NUH, Ci1, TPD, MGT, THR, Ti1, KDY, MXC, GDA, TOE, RR1, ADX, WNX, FGL, PEN and to keep it in the biotech space IVX, all of them hit new all-time lows post-consolidation. And it’s not just small companies—PDN, a multi-billion-dollar uranium player, did it this year and is still trading lower post-consolidation, even as uranium saw a bullish run.

    For me, consolidations are a red flag. Whenever a company announces a consolidation, I get out. I buy back in cheaper after the consolidation. It’s a strategy that’s worked every time—I’ve yet to see one where it hasn’t. If ATH pulls out a consolidation, I’ll be out when it's announced, and I’ll buy back in at a discount.

    Just weeks ago we were getting "we have been in discussions with multiple companies regarding a partnership over the past six months, and those discussions have ramped up dramatically as we got closer to the release of the 201 study results." from David Stamler, turns out in the 6 months despite these discussions with mulitple partners, and great phase 2 results, no one was willing to value us at over 100 mill, or else we would have taken that deal, had funding through to the end minus the dilution.

    So dissapointing how management handled this.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
1.0¢
Change
-0.001(9.09%)
Mkt cap ! $91.27M
Open High Low Value Volume
1.0¢ 1.1¢ 1.0¢ $26.77K 2.677M

Buyers (Bids)

No. Vol. Price($)
23 10823127 1.0¢
 

Sellers (Offers)

Price($) Vol. No.
1.1¢ 5110844 14
View Market Depth
Last trade - 16.10pm 19/06/2025 (20 minute delay) ?
ATH (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.