Consolidation

Can someone please explain to me, just HOW can shareholders vote on the merits of a consolidation, when the shares of FAR are Suspended from trading ??

It is highly, highly unlikely that FAR's shares would resume trading on the ASX prior to this vote.

Therefore we are voting in a vacuum.

The point is, IF FAR's shares were trading at say 60c, or 50c or 30c, would FAR propose a consolidation of its shares??

The answer is no, because it can raise capital at a price below 30c, or 40c or whatever. It can raise equity at say 30c by issuing a smaller number of shares at 30c, than they could at say 20c.

But at 1c, if they wanted to raise say $50m, they would need to issue another 5 Billion shares. So the number of shares would jump by 50% to 15B shares on issue. This is just an example.

So instead of having 10 B shares, they would have say 15B shares.

BUT - my point is, that HOW DO WE KNOW what the share price will be when FAR eventually is released from Suspension, and starts to trade again???

If for some reason the SP comes on at say 10c per share, would we wish to see our shares consolidated by 100:1 ??

What would we think about say 20:1. ??

ie, our voting outlook on this resolution to Consolidate (and heavily consolidate) IS influenced by the share price.

And we do not know what that share price will be yet !!

What a stupid time to propose a consolidation.

Why not just wait until the Suspension is lifted ?????? What's the rush?