Hey mate, my take on this is pretty straightforward and only as a short term holder..
Some long term holders are going to pull there hair out and get rid of their holdings, that’s a given.. it’s another consolidation, now I don’t know how many have happened in the past 12 years since condors’ (before name changed to Inca) ipo in 2008 that issued 40 million shares at 20c to raise 8 million exploring cobalt etc..
My assumption being now 4 billion shares outstanding quite a few consolidations have happened, which means eventually if loyal shareholders don’t continue to support the company and partake in capital raising their pieces of the pie are whittled away to nothing.. but that’s the risk when you invest in microcap explorers right? Sometimes it takes years to find something, or they eventually find nothing..
At the end of the day a company requires capital to continue to be a going concern, so realistically it’s either a debt facility or cap in hand to either existing retail shareholders or s708s etc.. without available capital there is no going concern and voluntary administration is usually around the corner..
With that said, what I see here is a junior miner who may have found something big in owned tenements, and are putting the wheels in motion to find out what that something big is.. it could be nothing, but it could be something.. has this happened before?, absolutely a couple of times and disgruntled shareholders move on, loyal shareholders continue to hold until they become disgruntled..
Pushing through a consolidation this quick after a couple of good announcements, usually indicates interested parties, maybe a joint venture, maybe an s708 or two, either or they have found something that’s interested more vestment.. 400 million shares on the register is more appealing than 4 billion.. and it gives the company more bites at the cherry for further raises, as you would expect in the junior miner microcap world..
I have the liberty of being short term and haven’t experienced the multiple consolidations, but I’ve been part of them before and they either tank or they just continue going, I’ve been a shareholder in “lifestyle” companies too but I don’t see this here..
I for one will be increasing my holdings before the consolidation, sure I’ll only have 20:1 when completed (all things considered with dilution) and it’s a risky punt but I’ve gone through my due diligence..
Hold on to your hats!
