It does seem a little excessive. If I were to hazard a guess I’d...

It does seem a little excessive. If I were to hazard a guess I’d say there’s a few reasons they’re doing this:

1) They want the Zelira price around about that of other cannabis companies in the US for market perception

2) They feel that institutional investors will be more likely to invest in a $3 stock as opposed to a 1.8c stock (so long as the fundamentals are good)

3) Unsure what the delisting rules are for the ASX but this move could also be to prevent that as the share price has been on a constant trajectory south

4) Listing on the NASDAQ requires a share price to be above $1, I suspect they’re looking to list on that exchange along with other well known cannabis stocks

5) Finally, good old marketing. $3 says credible business, 1.8c does not and they may feel the current stock price isn’t a true reflection of the business value (I tend to agree).

I think it’s a move they had to make especially with new money poised to enter the market once US legislation passes.