RE:RE:RE:Can someone with a brain please explainI want to emphasize that the share consolidation talk is all just
speculation, and that it absolutely won't be happening in the near future.. Maybe, maybe, maybe in six months or a year. So, it's not even worth thinking about right now. Even then, it won't be a big deal. The market cap is what actually matters and FSD Pharma's future market cap will be MUCH higher than we are seeing today. Nothing at all to worry about there..
As for the ASX comparison: it was a couple of my more senior investor friends who pointed that out to me.
Themuppetshow wrote: BuddyGuyMan wrote: From what I understand, the company chose this share structure, modeling it after a lot of companies on the Australian exchange. They chose to have a highly liquid float at a lower share price, rather than a tight float at a higher share price. It allowed them to set records for volume traded in a day, and volume traded in a week - both events gave them free press, and free exposure to new investors. Personally, it doesn't matter to me. Instead of buying 10,000 shares at $1.20, you can buy 100,000 at $0.12. Same thing. It's the market cap / valuation that matters.
At some point down the line, let's say the share price is $0.50 - they might choose to do a capital raise and share consolidation at the same time to tighten up the float a bit (5:1, would be a $2.50 share price, 260 million shares OS, and $650 million market cap, plus whatever a future PP adds). But A) That's just speculation and B) That wouldn't be for quite a while, since the IPO gave them the financing they need for the immediate future.
Remember though, market cap is what matters, not share count.
Themuppetshow wrote: How can a newly listed company have 1.3B shares outstanding already? How is this possible? To put things in perspective, Canopy have 200M shares outstanding. Aurora, 560M shares out.. How? Seems scammy. Don't get me wrong, I'm all about making some fast coin but this is red flaggish no? Not talking to the bashtards who just want in at a lower SP and I'll call you out if you coat tail my post bashtwatts. This is a legit inquiry.
That's more informative, thank you.. How did you gain insight about their modelling after the AU exchange?
Also, in your second paragraph, you are referring to a reverse split, yes? Not often seen as a good thing from my understanding but if they execute on their gameplan, I guess it won't matter much.