Consolidation --> Unmarketable Share Sale Facility

After the share consolidation, the next logical step for FAR is to initiate an Unmarketable Share Sale Facility. (USSF)
The USSF is not a Buyback.
In a Buyback the coy uses its own funds and buys shares on-market, then cancels those shares it has purchased on market.
So the coy uses its own funds to purchase those shares.

In a USSF the coy offers a facility whereby shareholders can agree to allow the coy or its representaive to sell the shareholders' shares on-market at no brokerage fee. The funds raised from the sale of those shares is then returned those shareholders.

The issue I have with any USSF, is that each s/h with an unmarketable parcel, must proactively "opt-out" of that share sale facility. If you do not tell the coy that you want to keep your shares, then they just sell them on your behalf, and return the money to you.

FAR would not use its scarce cash in a USSF.

Latest A/R shows:



Consolidation is 100:1 -- which is aggressive for such a small, and unloved O&G company like FAR IMHO.

So those 597 s/h holding parcels of 1 -1,000 shares hold an average 401 shares currently. (before consolidation).
After consolidation they will hold average of just 4 shares !!
Before and after consolidation those parcels of 401 (4) are still Unmarketable. (need $500 for marketable parcel).

The last price quoted for FAR was about 1.3c. So prior to consolidation a marketable parcel was 38,461 shares.

Look at the image above.
Of the 11,608 shareholders, 7,020 shareholders hold 100,000 shares or less.
In the category of 10,000- 100,000 shares there are 5,088 shareholders holding an average of 47,120 shares each.

One could expect that maybe 30% of those shareholders in that 10,000-100,000 category hold less than a marketable parcel of 38,461 shares?? ($500 / 1.3c)

Theoretically, if FAR traded at 1.3c before consolidation, then it theoretically should return to mkt at $1.30 !?

BUT - If FAR shares return to quotation, and trade below $1.30, say sub-$1.00, then a big proportion of those shareholders in the 10,000-100,000 category will be left holding unmarketable parcels.
It costs brokerage of what about $19.95 to sell a small parcel?

I reckon there will be 4,000+ shareholders who will be left with Unmarketable Parcels of shares once the consolidated shares of FAR return to trading on ASX.

That will entice FAR to get rid of thousands of small shareholders.