Looks like the first step in cleaning up the register for whatever plans they have next IMO.
Looking at last year's financials and the table that shows holdings broken down into holders/shares etc (which has obviously changed), there were 29,478 shareholders, after the consolidation they will get rid of a minimum of 10,000 holders I would expect, depending on the value they select, $500, $750, $1,000.
With the above, they may have a target of SoI after consolidation, the announcement says 219,618,259 after consolidation. Again with the above in mind, they might be able to get the SoI down to 200m, 205m, 210m etc.
Getting rid of the small amounts also saves cash with all the admin as well.
Going out on limb here, but my guess is readying for the Nasdaq as they often require a minimum dollar value share price depending on financials etc. If they do the consolidation at say 0.025c then this gives an AUD value after consolidation of 0.85c AUD which is USD 0.55c. They usually need to be around US$4 per SP but depending on financials can be as low as US$1 or US$2. They can't be too aggressive in reducing shares on issue as this impact volume for trading, market liquidity, retail entering etc.
Does this mean we can expect a positive announcement pre-US listing???
IMU Price at posting:
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