Dear Client, Red Mountain Mining Limited has had a 1 for 10 stock consolidation which we will shortly be reflecting in your account. To reflect this, we’ll be booking off your original position to then open a new position on your behalf, ensuring there is no gain or loss realised in the process. Any working orders to buy or sell the position at the time of the adjustment will be cancelled. Please be advised that the stock will temporarily trade on a deferred ISIN and will be assimilated back to the original ISIN once the deferred settlement period has ended. Once the positions are rebooked on your account to reflect the changes, you may receive automated system generated trade confirmation emails regarding closure and reopening of positions. Please also note that this is a mandatory event and no action is required from your end. After the adjustment takes place, the ‘book cost’ of the new position will reflect as zero, which is supposed to reflect the price paid per share after the adjustment takes place. You can edit the book cost by following the instructions found in this linkHow do I edit my book cost?Stock consolidation example: You have purchased 100 shares of XYZ ltd at $4 per share, buying the shares for a total of $400.XYZ ltd then announce a stock consolidation at a ratio of 1 for 10. On the ex-date, you still have 100 shares which are now trading at $5 per share. The market value of your position is $500. We close your original position and open a new one. You now have 10 shares trading at $50 per share – so the total value of your position remains the same.You’ve spent a total of $400 on the original 100 shares, but now you have 10 times less shares. To reflect the correct book cost you can divide the total amount you’ve spent on the shares, by the new number of shares you have after the consolidation.$400/10 = $40 per share is the new reflective book cost to enter into your position. If you’ve bought your position over multiple transactions, then you’ll need to sum up the total amount you’ve paid for the shares to divide by the new number of shares you now have. Please note: This information is intended as a generic example, and subject to change at any point. It may not apply in every scenario.If you’re still unsure how to edit your book cost after seeing the information above, please contact our client services team via email, webchat, or phone. AustraliaEmail:
[email protected]: No: 1800 601 734Webchat: ig.com/au
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