I haven't been following any news lately so I'm speaking off the cuff.. Definitely a hard call to make much sense of a consolidation.. The only way I would justify it is so that any discounts given through a cap raising when the SP is hovering where it is, well if its at .002 why would you discount to 0.001 at 50%.. I guess when its at 4c you can have a reasonable discount value that actually has an on market sale value.. I didn't say it would be a good justification but well.... I don't like a consolidation especially before any sales go through and the asset value of the company increases to support a low to no loss for the long term holders, and I reckon if they are to raise money that they should be offering the standard 10-15% discount, even at these low levels.. Granted sophs won't be able to turn a huge profit unless the SP gains buyers support or goes up, but when it does go up they stand to make excellent profit increments per point greater than 50% per invested unit... So much for the sale of a MetaM... Its probably worth reviewing the past announcements checking the t's and i's and putting a file together for special attention... I'm flat out at the mo and don't really have much invested here for motivation to follow it through but Pogues, you seem to be a good candidate to put a file together and make a few unbiased observations. It does seem management here are screwing it up for the long term investor.. Shame. Paul, get some healthy sales through before consolidating and build up the value of the actual company assets, if you need to raise cap at a discount, make it a token discount rather than a functional immediate profit mechanism for the Soph's.. Without consolidation and despite the dilution of the stock, the value of the stock will be far more secure to the investor even if the dilution factor doubles.. Heck enough companies are still trading with beyond 3B shares on their register.
MDV Price at posting:
4.0¢ Sentiment: None Disclosure: Held
