RE:Could A Consolidation be in the Works?biloshi wrote: a 4 to 1 rev split would put the share price at 10 cents with just ver 50M shares outstanding.
Cheers!
Possible but a consolidation is usually tied to a financing in order to meet the required price level, usually a minimum of .05 , and so a rollback is done to get the price up to that level or higher.
We don't have that problem as we have all the money we need, at least to get the mine up and running.
The big risk to us has already passed as Galena could have asked for revised terms to their original deal based on market conditions at the time and the PP could have been as high as 100 Million shares at .05 instead of 40 Million shares at .12 to raise the same $ 5 Million ! Or even worse, they could have walked aweigh and allowed Trafigura to take the Co's assets for debt.
The nice thing about having Galena's equity in this deal at .12 is that anything nasty that happens to us also happens to them but much worse, and they require a much higher share price just to break even. What's not to like about that !
I say " Us" meaning those of us fortunate enough to be buyers of the stock now and not when it was trading at .25 and much higher. Check out some of the insider buying only a few months ago, they need a ten bagger from here just to break even.
If you've got a time horizon longer than your settlement date things could work out very well.