StageZero Life Sciences Ltd T.SZLS

RE:RE:RE:RE:The 2:1 consolidation

[Jonnyboy85]

your first hint that your opinion on the 2-1 might be wrong is that 4bash4ever and the newly created dez are agreeing with you lol

Jonnyboy85 wrote: Sorry dude, but why would they just use a 2-1 split for no reason and at random? How would that benefit anyone? No one stands to gain from a random 2-1 split, even the calls for dilution are silly because 1. we have 6.5 million in cash, 0.9 mil in working capital (almost more important) so dilution isn't really necessary unless there is a colossal development that necessitates it, especially when you take into account the Rexall deal and the Care aquisition and all that rev is rolling in as we speak alongside the solid existing covid rev.  You'll have to give more than you just don't like the idea if you want to be taken serious

molotov420 wrote: That is nonesense. If you are an actual shareholder and value your investment, VOTE AGAINST the consolidation. If you give them the option to do it whenever they want, SZLS management will just do it at a random time, just like the 8:1. Keep your shares people! If they get to the $2.50 zone then lets talk. Until then they shouldnt have the option! I can tell you my shares will be voting against.

Jonnyboy85 wrote: Despite my misremembering the previous years consolidation request ratio I still see it the same and agree with you. They could just ask for 10 to 1 and put us on the Nas tmrw. There's a specific reason they're asking for 2 to1 and it's likely just a contingency plan in case our sp doesn't get to the $5-$6 range or whatever we need in canadian for the Naz on its own. They aren't even giving us ranged requests like the 2-1 to 6-1 in 2019 that we didn't use, or the 2-1 to 8-1 we did in 2020. And even with the recent sp downturn I still think it's helped to some degree with the algorithmic trading but only time will tell on that front. Anyway It shows the company is confident about the share price appreciation, and they would know better than anyone. We don't lose anything in a consolidation, despite the bashers best efforts to convince you otherwise. the reason spammers and bashers hate it is because a smaller share count makes their manipulative trading games more difficult so they always belly ache about it and hope we vote it down. I'm confident It'll pass, there's enough cool heads out there that understand what's going on. If it gets used it will be to benefit us, if not, well no harm, no foul, like 2019. But anyway, good post lith almost missed it with all the spam here

LithLover wrote: The 2:1 consolidation is to give the company the ability to use it in the next 12 months.  It's not a 8:1 or 15:1 it's a 2:1.  They have over $6 million in the bank with similar revenue coming in Q2    (Q2 filing due Aug 16). 

They don't need to do a 2:1 consolidation to finance.  They have more than enough room in ther share allocation if they wanted to issue new shares but with $6 million and basically break even for the next couple quarters why would they?

Now lets say they reach $2 or $2.50 and look at the 2 options. (Yes I know that is a big assumption)

1) No preapproved consolidation so the share price hits $2-2.50 and they ask for a vote to do a 2:1 to uplist.  What do you think the shorts would do.  Pile on and push it back down to under $2.  So a share consolidation happens but they don't meet the Nasdaq listing requirements and the whole cycle happens again.

2) They get pre approval.  Stock hits $2-2.50. They halt the stock announce the 2:1 consolidation and open on the nasdaq. No opportunity to short.

There is a specific reason they only wanted 2:1.  They could have asked for a 10:1 and just went there but they know the fall out that would be on shareholders and they have to show they have plans to move the share price first.

If they don't reach $2 or more it wont happen anyway so nothing lost.   And a midnight consolidation and uplist is more appealing than letting the shorts get in the way.

In hindsight the 8:1 didn't work, the Aristotle roll out was not well planned and the company is getting better but the marketing is still underwhelming.  But that's the past.  They know they need to complete the Care deal, increase marketing, work with larger empoloyers etc.  Tripp mentioned all these milestones being necessary in the confrenece call.

So assuming they do these things whats the best way to get uplisted:

1) Get pre approved for a 2:1 consolidation and use it after achieving $2-2.50
2) Ask for a vote after acheiving $2-2.50
3) Organically get to $4-5

Ideally all shareholders would like #3 but is that realistic and how long will that take? 

If we can't have #3, #1 seems a better option given the recent activity of the shorts than option #2.