Hartleys unfortunately have a frankly embarrassing history in funding duds and then screwing the original holders - think of recent placements to companies like GCY (Gascoyne) - now in administration, and OBM (original holders left with a tiny fraction after admin). This is a terrible outcome for GTE holders. The new shares are to be placed at 1c per share after consolidation on a 60 per 1 basis. That values the present shares at 1/60th of 1c ... which is 1/6th of the lowest price the ASX will allow trading of the present shares (at 0.001). So, anyone buying shares on market at the moment (at 0.001) will likely find that they are worth 1/6th of that after consolidation. The only reason for buying now is as a basis to buy new shares at the 1c price in future ... but since you are likely to be able to do that on market anyway ... and almost certainly at a better price than 6 times that price point, it would appear to be foolish to be buying at the present structure. Hartley's have of course figured this all out, and have priced the new shares at a price point that the market cannot match, since the ASX does not allow trading below 0.001.
GTE Price at posting:
0.1¢ Sentiment: Sell Disclosure: Not Held
