A consolidation/split is literally just reducing/increasing the number of outstanding shares by a certain factor. Apple did this when they were trading in the $600s for a 6:1 split of the previous trading day's share price. I was also holding options at the time and given options are derivatives of the underlying security, they also reflected the consolidation with the strike prices and number of contracts.
In this case it is simply the reverse which will reduce the intraday pips generating larger % gains for the pip traders but it will simply by for every 5 shares you have you will receive 1 new share at 5x the price. E.g. 500 shares @ 40c the previous trading day, post consolidation you will have 100 shares @ $2.00.
Consolidation does NOT suddenly make you richer or poorer, your value of holding = price x number of shares. Your value of holding pre and post consolidation does not change, only the price and number of shares!
Anyone that suggests otherwise have their own agendas ... stick with the facts!
GXY Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
