"Now, after this consolidation, you will have x100 less units,...

"Now, after this consolidation, you will have x100 less units, valued at $8 each (to begin with) Does $16 seem further away than 0.20c did prior?"

It seems exactly as far away as it did prior... +100% MC.

"I dunno, maybe I’m the only one who feels this way - but the risk/reward of penny stocks is the massive percentage gains that can be had when things go well"

The risk / reward of penny stocks isn't the low SP. It's the low MC and the fact they are pre-revenue. Its the gap between the value of the company today vs the potential value tomorrow. This does not change whether there are 1M shares on issue or 1B.

The example above using IXHL is the most elegant way to demonstrate that this is true. IXHL moves at exactly the same % fluctuations as IHL every day, regardless of the SP for each instrument. The reason why, because that % is worth the same amount of risk to reward ratio i.e. actual amount of money invested to make it move. That is the only psychological factor we need to worry about.