Sorry Bunny I will try again. I think my thread should have been...

Sorry Bunny I will try again. I think my thread should have been consolidation and the erosion of shareholder capital.

It is concerning when I read people buying in on the dips and averaging down so I will try again but I will use 1c for my consolidation day value though I wouldn't be surprised if it was less.

I agree win your maths but do a bit of rounding. 2.5 nil to 125mill. Let's say you had invested 20k at 2c for a neat 1mill post con 50k shares @20c = $10k

Now I am guessing that the price needs to come down a bit from 20 because we are being consolidated for fund raising so the boss can add to portfolio so I think a bit of pressure on the price to get our average down so we can offer a discount to that with 2 for 1 attaching option.

Let's say 15c price now so our consolidated is now 7.5k. For ease of numbers let's raise 2 mill at 10c. 20mill added to our share balance for 145mill. Little pull back on price to 12.5c.

Now to get our money back we need to get to 40c or a market cap of 58mil from a possible starting point of 18mill with some cash in bank and buying some more assets?

Now let's say we didn't buy any to average down sold what we had upon news of upcoming consolidation and ended up with 20k in kitty.
Best case scenario Dyl opens @ 20c we manage to grab 20k worth and ended up with 100k shares & 20c breakeven pt.

Show s bit of restraint and pulls back a bit to 17.5 or 15 end up with more in the kitty with some cap losses in the bank for pulling out before consolidation for future gains in DYL

Sorry about long read and any assumptions I have made that may not pan out like I have put above but the basic principle of loss of value on the preside and any presumed benefit of topping up and averaging down was what I was trying to get across. if your purchase price is more than conso day price you will be looking at s bit of a hole on the other side

Cheers
CR