meaning of minimum 1 for 22 consolidation

For some this kind of M&A is Meat and Drink, GL to them.

For many, especially those more focused on porphyry copper, it is as alien as if the Martians had just landed.

So as I have done before I'll turn to Bronze11 for some help.


Mate, if you don't mind and have the time pls check me out.

1. The ASX listing rules require this deal to include a CR at 20c. or more. Hence the need for consolidation to get current SP up to that level.

2. The Consolidation stated in yesterday's ann of 'minimum 1 for 22' is based on yesterday's SP of .009, because .009*22 is close to 20.

3. If the SP runs from here until date of suspension (28th July ??), say up to 2c then the consolidation ratio is adjusted accordingly. ie .020*10=20.

4. The above is only my assumption because the ann does not state that specifically. IMO the company should be requested to clarify.

5. To sum up the variable consolidation ratio is simply an instrument to maintain the relativity between the parties.

Mate, am I right or nearly right and can you add. Thanks for your help.


Finally the value of the company after relisting date (1st Sept ??) is based solely on the metrics of the new cashed up and/or expanded trading entity.

Cheers. Please DYOR, and good luck for Holiday Planet