OTCPK:GWAXF - Post by User
Comment by
Tim2Agamion May 22, 2019 11:07am
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Post# 29764092
RE:RE:More buyer and less seller should go up very fast $$$$$$$$$$
RE:RE:More buyer and less seller should go up very fast $$$$$$$$$$Well, as they say, consider curbing your enthusiasm for the moment. Despite the large scale support providing the illusion of a floor, why would anyone buy at .25, let alone .30 when there is every likelihood that the shares will be available at .15 - 185 after the proposed 1 for 10 consolidation?
As the Company advises as to risks (Management Information Circular, page 21) as fair warning:
................................
"There are numerous factors and contingencies that could affect the Share price prior to or following the Consolidation, including the status of the Corporation’s reported financial results in future periods, and general economic, geopolitical, stock market and industry conditions.
Accordingly, the market price of the Common Shares may not be sustainable at the direct arithmetic result of the Consolidation and may be lower. If the market price of the Common Shares is lower than it was before the Consolidation on an arithmetic equivalent basis, the Corporation’s total market capitalization (the aggregate value of all Common Shares at the then market price) after the Consolidation may be lower than before the Consolidation."
and
"A decline in the market price of the Common Shares after the Consolidation may result in a greater percentage decline than would occur in the absence of the Consolidation, and the liquidity of the Common Shares could be adversely affected following the Consolidation."
Still, even though thre is generally accepted evidence that shares "most commonly" decline after a reverse, there are clearly weighted advantages (even necessities) to the proposed consolidation which are also outlined in the circular.