I can understand some people relying on previous experience to...

I can understand some people relying on previous experience to inform their decisions in relation to an administrative decision like a share consolidation. Here is what Nicholson has to say on the subject:

In every market there is a usual price range for shares. It is only loose, but for example in Australia most companies sell for between $1 and $10. Prices under $1 and lower tend to indicate poorly performing or speculative companies. Prices over $10 tend to indicate very large solid companies.... [Discussion of share split redacted] A consolidation is the reverse of a share split. This is an attempt to increase the price of cheap shares back into the range of investment grade shares. It is hoped this also will increase the price if investors look on the company more favourably as a result.You are obviously looking for a way to make profits out of it. The accepted way is to buy into splits and consolidations. However, I think it only works in strong bull markets and where it is a very good company anyway. In other words, it is a marginal factor in the picture and you should concentrate on the more important factors that drive share prices.

As such, I think it's ultimately a good thing the BOD is proactively looking to reposition the share price back into a range where it might catch the eye of institutional investors. Those who are planning on selling out would likely have done so anyway. A certain number of holders selling large holdings at lower price is equivalent to that same number of holders selling smaller holdings at a higher price. Either way - the sell side will probably stack for a while as the market responds to the re-listing. The question I've reflected on is whether or not you want that re-listing to be in the institutional investor sub-10c dead zone. I'd prefer not. As Nicholson says, the ultimate goal is to attract new money, not desperately try not to keep too much of the old from bailing out.

This company, if it is going to survive, needs to forge ahead with bold decisions. Combined with an apparently focussed and more transparent BOD, a strategic Australian-based asset development policy, I think the reduction is sensible and provides far greater opportunities.