re: great move by tox Excellent move by the company. I used to be opposed to such a move but the share price is becoming increasingly frustrating for all shareholders, especially the longer term holders as the share price has not represented its true value for a long time relative to its current earnings and the average pe ratio of its peers.
The shae price has died at 12c. Im sure when the directors realised that the two recent acquisitions and the profit forecast announced recently of $8m ebitda barely went noticed by the market, it was time for some action to be taken.
There is still heavy resistance at 15c and unfortunately it seems that only a takeover bid is the only way that the share price could possibly increase above 15c.
At least with a consiolidation, the psychological resistance points will have disappeared. The company has no intentions of raising cap so anybody who are worried that the share price will drop post consiolidation due to a cap raising should not worry. The company in the eyes of many in the market will no longer be considered a penny dreadful trading at 12c. Yes I know the mkt cap should not theoretically change but psychlogically it will introduce many new investors in TOX and TOX will be taken much more seriously by institutions IMHO.
A big thumbs up to management
Cheers
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