GGP 0.00% 0.6¢ golden gate petroleum ltd

I do agree with that part, an extremely low MC for any oiler in...

  1. 1,720 Posts.
    I do agree with that part, an extremely low MC for any oiler in the PB with a few thousand acres.

    The part of the MC I'm concerned about is why is it so low?

    And what to do to raise capital with a register pushing towards 5 bil. and a SP towards 0.001

    Once any company heads towards 0.001, then how then do they raise capital? Maybe they do what VIL's partner in a few wells did, consolidate to fewer shares, the MC you would reason should stay the same, but does it?

    VIL before cons SP= 0.001 shares=3.337 bil

    cons at 50:1

    SP should be 0.05 after cons.

    VILDA after cons SP= 0.022 shares= 66.74 mil

    As anyone can see the SP more than halved after a cons with current value equal to only 0.00044 before cons. price.

    This is to provide an example only that there is no guarantee of the MC retaining it's previous value after a cons.
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    Low MC's are dangerous with registers in the billions
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    With the example I have used, which has only just completed their cons. and still trading as VILDA the highest bid is just 0.012 currently. This could all change of course, but these are the COLD, HARD FACTS INDICATIVE OF WHAT HAPPENS AFTER MANY CONSOLIDATIONS.
 
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