Holding through suspension

I would like to get everyone's views regarding the decision quite a few are going to make soon; that is whether to hold through suspension or sell just before.

I would say one of the biggest risks of holding through the suspension period would be that the company cannot satisfy the re-listing requirements and therefore the reverse take over falls apart. My response to this would be that considering the shares required to be raised under the prospectus have all but been issued the risk of a failed re-listing would be negligible (nil in my view).

Another point is that let's say the company goes into suspension at a price of 3c; with 320 million shares being issued at 2.5c under the prospectus many would consider the possibility that these shares are dumped resulting in the share price retreating back to 2.5c. While definitely a chance I've heard that a great deal of the prospectus investors have a long term view of the stock which would reduce the chance of a dumping occurring. Further to this point the investors in the last two capital raises had agreed to have their securities restricted until the relisting, providing more evidence that the company's investors aren't short term profit takers.

I believe these two points would be the most significant counter arguments to holding during suspension.

With the negative aspects aside, the opportunity of holding through suspension could be game changing.

While the shares will not be trading the company will be continuing the run the business for this period which for Xped could seem a lifetime. There is the very real possibility that not only further MoUs are signed with chipset manufacturers but a binding agreement eventuating with the current MoU partner (or a handful of other possible company making developments). If any of these were to eventuate there is no question that the price would gap up nicely on open.

If there is no significant news over this period then there is still a very likely possibility that the 2.5c prospectus investors will pump the share price up the first few days of trading as XPE before taking some profit off the table.

There's no doubt the hold vs sell decision is very complex but you can make it a much easier decision by considering whether you believe the company will sign further MoUs / convert MoUs to binding agreements during the suspension period, as if this occurs the upside could be mind boggling.