Typically, when a consolidation happens, the shareprice responds...

Typically, when a consolidation happens, the shareprice responds accordingly. For example, if it's a 1:10 consolidation and the shareprice was 1c, when the number of shares is reduced by a multiple of 10, the shareprice jumps up to 10x the old price. This way, the market cap remains the same. So the value of your holding remains the same. As we know, markets aren't always efficient, but that is the theory.

This one is different because we have a spin-out taking place at the same time. IMX shareholders will recieve shares in Graphex at a nominal price of 20c. I'm looking at this spin-off as an IPO. You never know what an IPO will trade at before it lists. With the strength of the Graphex story, and the advanced discussions around off-take agreements, I expect it to list a lot higher than 20c.

Similarly, what Indiana Resources will trade at is a mystery. We're removing what I consider the jewel in the crown (the Chilalo project aka Graphex), leaving a base metals explorers, granted with some very promising prospects. Who knows where it will trade!

One thing is for sure, the market should find it easier to put a price on the two companies once they are separated. Right now, it's hard to do a peer comparison and it's hard to attract investment for such a broad portfolio. Graphex in particular will find investors readily, and in my opinion its shareprice will increase rapdily to bring it in line with (or above) its peers. The strength of its product is so far above anything else that's available.