Nope. You don't understand what is going on.
The consolidation ratio will be determined or "made up" through negotiation between ODN and gridComm.
The consolidation ratio will determine the ownership percentage that current holder have in ODN post consolidation.
A lower consolidation ratio (e.g. 2:1) will preserve a larger ownership interested post consolidation than a higher consolidation ratio (e.g. 100:1).
The value of your holding will not remain constant whatever the consolidation ratio used because the market will determine the value of the new company.
The consolidation ratio will have no effect on the market value of the company post consolidation.
E.g. Suppose the market believe gridComm should be valued at $100m.
If current holders are left with 20% of the new company, then your holding will be worth x percentage of $20m; and
If current holders are left with 5% of the company, then your holding will be worth x percentage of $5m,
where x remains constant.
Capisce?
Nope. You don't understand what is going on. The consolidation...
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