OTCPK:JENGQ - Post by User
Comment by
Capharnaumon Sep 01, 2020 10:05pm
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Post# 31491961
RE:Consolidation
RE:Consolidation Marky1 wrote: Coiuld someone please explain the consolidation process...What...where...why..? I bought more shares and my cost av. is 61 cents....When do u think that a 1$ will be reached, if ever? Thank u
Jean Marc
Each 100 shares you own will be converted to 3 new shares. In theory, the initial share price will be equal to the converted current share price. At $0.40, that would mean $13.33. However, the current shares will only represent about 36% of the shares of the new company. So the other 64% of shares that will be issued were bought at $3.41. To reach $1, the new shares will need to be worth $33.33. Everythings possible, but there will likely be a lot of selling pressure to the downside, as even at $13.33, the buyers of the new share (65% of the new shares) could sell and get out with a fat 390% return.