"The reason for the consolidation is to list on the OTC.QX."Really!? Please provide a link.
The company doesn't say this. Their reasons for the consolidation are:-
(a) Purpose of proposed resolution
The Directors have proposed the Consolidation for the following reasons:
(i) the Company currently has 1,099,532,721 shares on issue which represents a relatively large number when compared to its listed peer group;
(ii) the Directors consider that the Consolidation will assist in reducing the volatility of the Company’s share price and enable a more consistent valuation of the Company; and
(iii) the Consolidation is also expected to assist in positioning the Company for long term growth by making an investment in the Company’s securities more attractive to institutional and other investors.I am not a fan of consolidation
in itself.If the anticipated news comes soon that will be the catalyst for some SP appreciation, nothing else.
It is a load of nonsense that a consolidation by itself opens up larger capital markets. The MC of the company has a large bearing of when the larger funds become interested (& of course what you are doing) and where you are positioned in your listing (ie top 500, 300 etc) and that has nothing to do with consolidation.
Consolidation purely sees a higher Sp which suits traders (& others) and sets a new base which can drift alarmingly however is not usually noticed as quickly.
It may improve liquidity purely because it can be much easier for traders to turn over some volume with say 3 or 4 cent swings and move the sp accordingly!
60c can become 30c in the blink of an eye but of course it doesn't sound as bad as 3c does it
Anybody with any investing history will have seen this sort of thing many many times!
Maths is maths - the rest is just nonsense!
Of course if CDX come up with good news then that is a different story and I have no real issue with reducing the SOI, so let's hope all the talk of impending news is correct.
I always believe consolidation of shares should happen
after any expected re rate!
If the CDX Directors are doing this to enable an OTC listing and believe it is best to do that now which will be beneficial when news announced then they should spell that out..............
