Pre CONSOLIDATIONI thought CCC was a good buy @ 0.040. then they...

Pre CONSOLIDATION

I thought CCC was a good buy @ 0.040. then they said

21 june 2011 Lodgement of open briefing

openbriefing.com
Continental Coal has proposed a 10 for one share consolidation that will be put to shareholders for approval at the Company’s General Meeting scheduled for 29 June. What is the rationale for seeking a share consolidation?
Executive Director Jason Brewer
A consolidation of the Company’s share capital has been discussed with many of our shareholders and several international institutional investors and investment funds over the past 12 months. Indeed it was a discussion point at the Company’s AGM last year.
Increasingly we have been approached by institutional investors and investment funds in Europe, North America, Asia and Australia regarding potential significant investments in the Company. The large majority of these institutions have made it very clear to the Company that, irrespective of our growth potential or current market capitalisation and value proposition, their investment mandates preclude them from investing in Continental with its shares trading at their current “penny-stock” price levels.
Based on these discussions and after further feedback from our advisors, we are of the firm opinion that in order to attract significant investment into the Company from international institutional investors and investment funds, we need to create a more efficient capital structure and share price for a listed entity of Continental’s size and market capitalisation.
The Company currently has more than 3.0 billion shares on issue due to historical equity- based capital raisings and corporate transactions. This is disproportionate versus our peer group listed on the ASX and AIM. We believe that the proposed share consolidation will result in a far more appropriate and effective capital structure for the Company and a share price more appealing to a wider range and larger number of institutional investors globally.

WE WOULD HAVE BEEN BETTER OFF WITH NO CONSOLIDATION!!

story telling AIM listing Investment Institutions?

OH Well back to a penny stock we go. can't believe reports anymore.