The number of shares is not important, and a 1 for 10 consolidation will soon take care of that.
I will have to do the sums to evaluate this deal, but to go to a debt free ( risk free) position, rather than a ' hanging by your balls' position, is good.
Because of the risk of insolvency, the company was valued at duck sh*t.
With certainty, it can be valued as a going concern, which is a hell of a lot higher than duck crap.
Sure equity has been diluted, bur we paid nothing for it.
If we assume company worth say 30 cents a share , but a question mark over survival, then it makes sense to give 15 cents away for ceratinty.
So your 4 cent share , potentially worth 30 cents ( and possibly zero) , is now definitely worth 15 cents.
That will do me.
The numbers above are just for illustrative purposes, I will have to do a bit of computation to get the hard numbers, but the logic looks compelling
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