RE:Share consolidation - still not decidedHi Infocounts:
The share consolidation has been in the works for sometime and it would be good for us shareholders imo. They now would like to revisit and modify the share consolidation ratio.
They would like to modify this ratio so that the stock could perform at its optimum when listed on a "recognized US stock exchange." Here is an example of why this ratio is important. Let's say we have 1 bil shares and do 10 to 1 cosolidation, now we have 100mil shares for EFR. That might be a decent number for a junior on TSX, but if you are thinking of moving to a "recognized US stock exchange" because you are building a company that is a major player in the Uranium business, you would actually want MORE shares outstanding than 100mil.
This is because major institutions and funds need a fluid stock so they can get in and out of easily. If there are not enough stocks available and the vol is low, you are shooting yourself in the foot. EFR is a growing company, from a tiny junior to a major producer, therefore it only makes sense for managemnt to revisit the ratio of the consolidation so it will be appropriate for their future plans.
On another note below is a little nugget...
"To this end, the Company is considering a number of initiatives aimed at strengthening the Company's corporate brand and capital markets profile, including a modification to the share consolidation ratio and other potential changes"
Can anyone guess what the other potential changes might be?
Just my houghts,
Simply