So Todd has 2,259m shares
OCJ has 758m shares.
Total = 3,017m
Total votes cast FOR the Consolidation were 3,397m.
SO of that 3397m shares, there were 380m shares non-Todd/OCJ which also voted in favour of the Consolidation.
Certainly the non-Todd directors would have voted FOR, but they do not hold many shares.
In my experience, with a coy like FMS, the only shareholders who benefit from the consolidation would be Todd and OCJ. They have very large holdings, and do not trade the stock.
Without a shadow of doubt, FMS will now conduct an Unmarketable Parcel Sale Facility at some near-term time.
FMS does not need s/h approval to do this.
Current SP is $0.035. With Consolidation of 25:1 the SP post-Consol theoretically should be 87.5c !!
Good luck with that.
My experience says that that level will not be maintained, unless there is some very good news.
How confident are we that will happen?
The minimum parcel of shares is $500. So at 87.5c that equals 571 shares.
At 31 Aug 2020, FMS had 4,060 shareholders.
At that date there were 1,191 s/h with an unmarketable parcel of shares. That unmarketable parcel was 9,804 shares.
at 31 August 2020 SP closed at $0.051. So at a higher price of 5.1c then, at the current price of 3.5c, there would clearly be way more s/h with unmarketable parcels.
At 31 Aug 2020 there were 1,421 s/h with holdings of 10,000 or less.
There are 3,207 s/h with parcels of 100,000 or less.
So 79% of s/h held parcels of less than 100,000 shares.
Ergo, if when FMS consolidates, and the SP drops below the current theoretical level of 87.5c, then more and more s/h will be available to be included in a potential Unmarketable Share Sale process.
100,000 shares becomes 4,000 shares under 25:1 consolidation.
An unmktble parcel at SP of 87.5 is 571 shares.
If the SP drops to 60c, then an Unmkble parcel is 833 shares.
IMHO, the only reason for a consolidation at this point is to achieve the end-point, which is the reduce the number of pesky retail shareholders.
The ones who make the most noise, seem to be the ones with few shares.
Consolidate, then conduct an Unmarketable Parcel Sale facility.
It should be highlighted, that if FMS conducts a Unmarketable Share Parcel sale, each s/h has the right to Opt-out of the sale, and thus retain their shares.
But importantly, the default position is that it is up to the individual s/h to advise FMS that they wish to retain their shares. If you do not give that advice to FMS at the appropriate time, then your shares are sold (and you save brokerage - FMS pays brokerage), and the sale proceeds gets deposited into your bank.
All just IMHO. Happy to be corrected.
Not advice - just speculation.
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