AS mentioned, many times, this was my biggest fear.... Ever since the last CR that was a literal give away, then to suffer the SP being for ever manipulated to keep it down below the last CR of .005 for near a year now, there was always going to be this consolidation ..
vote no.... not that it will matter, as the top 20 will vote yes guarantee it, especially Trudell IMO...
Every company that does this is due to their massive capital raisings that have created massive dilution over the years.. obviously sitting on 5billion shares and trading at .004 the upcoming CR's will basically be a nightmare, so hence the anticipated consolidation that puts us current shareholders at huge risk of losing out big time..
IMO no company should be allowed to consolidate unless they have a proven growth of revenue, are cashflow positive and will not being doing a CR for a minimum of 2 years..
This is what will happen to our holdings..
lets say you currently have 5,000,000 shares (value today at $20,000) that are about to drastically be consolidated to 333,333 shares... If the SP is still at .004 cents at time of consolidation the SP will change to .06 cents...
so lets say ADR drag on and on again making minimal revenue and need another CR, adding more dilution… and lets say time goes by and we eventually fall back to .004 cents… so your $20,000 holding has now become valued at $1,333….. where as if we currently even hit the dreaded .001 your shares would still be valued at $5,000 without the consolidation..
I have witnessed many consolidations in my 15+ years of trading… its hit and miss IMO… some have done wonders, alike FMG… I held Azure minerals AZS at the time also when they did one, it fell back hard initially, however it did come through years later 10 fold… anything can happen..
But understand that consolidations are purely to allow for more room to do ongoing CR’s..
This company needs to prove itself now and show serious revenue growth… the SP needs to jump at least 100-150% pre consolidation IMO, and there needs to signs of being cashflow positive without the need of massive CR’s…. I don’t think the team here is as driven as we would like to hope… allowing for more massive CR’s/dilutions makes for security of time, while CEO’s and alike getting richer and fatter and current shareholders just get taken advantage of…
I hope I am proven wrong…. IMO consolidation should happen when revenue streams are strong… due to the ongoing manipulation of shares over the last year, why wouldn’t it continue to happen? And now with more room to drive even lower… IF there is a risk of take over from the likes of Trudell, this will be in their favour, push the SP even further down, gain a bigger holder to be over 51% …. Ahhhhhh… faaaaaarrrrrr#$#@%$ I want to be proven wrong…
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