Share Consolidations Share consolidations have zero effect - - nothing - - nada - - zip to the market value or potential dilution of a stock.
A company with 400mm shares at $0.15 is the exact same company, with the exact same market cap ($60mm), as one with 40mm shares at $1.50
And any dilution amount is the same for any $60mm company.
The only thing share consolidations change are the share price, which can:
-> Give better optics
-> Keep a company from being a penny stock which some firms / investors are not allowed to touch
-> Can help companies meet exchange listing requirements for minimum share price.
I don't deny that many worthless companies have performed repeated share consolidations that keep the share price looking decent while the underlying company is destroying shareholder value.
But a share consolidation in and of itself has no effect on the company's value or dilution potential.