Ann: Consolidation/Split - IVX, page-27

"The consolidation will not technically impact on the value of your holdings or your breakeven. While the number of shares will fall, the share value will increase by the corresponding amount. For instance, assuming the share price is trading at 0.3c and doesn't change post consolidation, the price will be trading at 30c. If you held 1 million shares before the consolidation, you will hold 10k shares post. As such, the value of your holdings won't change due to the consolidation, and by extension, the market cap of Invion does not change either.So, let's say your think Invion's market cap is cheap and should be 10 times what it is, this calculation doesn't change regardless of the share consolidation.Further, there is good reason for undertaking the consolidation. At the current price, a 0.05c change (the smallest difference between the bid and ask) will lead to a large percentage change. At 0.3c, the move represents a ~17% change in value.However, post consolidation, the stock will theoratically be trading at 30c. A 1c move (the smallest bid/ask spread) represents a ~3% change.Why this is important is because many investors (particularly longer term and professional investors) will be put off by the volitility and will not invest in IVX even if they like our story."