Share Consolidation?I just read the management information circular for the July AGM and vote.
In it, there is a resolution to be passed to permit the board to complete a share consolidation to a maximum of 20-for-1.
I think the current share capitalization of about 108 million is sufficient and still provides room for private placements if required, especially if we go through another NCIB and 5-6 mill shares below NAV. I think the rationale would be to increase the share price enough so that it can attract certain investors. Is that share price $0.50 or something closer to $1.00?
If they did a 10-for-1 consolidation that would give them the $1.00 per share market price but thats a tad annoying. Very rarely do share consolidations yield the desired effects in my experience.
Any thoughts from anyone else?