ASA Gold and Precious Metals Ltd C.ASA

Primary Symbol: ASA

ASA Gold and Precious Metals Limited is a non-diversified, closed-end investment company. The Company's investment objective is long-term capital appreciation primarily through investing in companies engaged in the exploration for, development of projects or mining of precious metals and minerals. The Company invests approximately 80% of its total assets in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals; held as bullion or other direct forms of gold, silver, platinum or other precious minerals; in instruments representing interests in gold, silver, platinum or other precious minerals, and/or in securities of investment companies, including exchange traded funds, or other securities. The Company’s investment adviser is Merk Investments LLC.

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ASA Gold and Precious Metals Ltd > Share Consolidation

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Comment by Righttothetopon Apr 28, 2021 9:29am

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Post# 33081388

RE:RE:RE:Share Consolidation

With respect....a RS isn't a mechanism that is used by 'successful' companies much at all. Of course some do, as VLNS wants to, to inflate the SP and meet the listing needs....but your example proves my point.

Going from $4.50 to $20 is easier than going from $10 to $40-50.

I expect that VLNS is going to go for a 3:1 reverse...so let's say post RS $10. You think that VLNS will trade at WEED or Tilray levels in the near to medium term?

Longer term they may well....it's a damn fine company and run very well....but I personally was hoping for a run to >$5 before any of this kind of shenanigan happened.

mesa1 wrote:

Righttothetop wrote: A RS is rarely a good thing. I think in VLNS case, I think it can be.

That said, people looking for a 10x from here are in the wrong place....if the RS goes through, a double or triple (depending on consolidation factor) is all that anyone can hope for in terms of growth....

Too bad....this could have gotten to $10 w/o any help

KelownaClown wrote: Further details of the proposed share consolidation will be contained in the management information circular of Valens mailed to Shareholders and to be filed shortly on SEDAR at www.sedar.com.

I just checked sedar, and the "further details" have not yet been posted, but what do people think about the idea of a share consolidation?

That's bad info.

Sure a consolidation of shares will occur after a company fails, and needs to be reorganized to give it the opportunity to attract a new shareholders and a viable business.

But it is often used by successful companies that are ready for the next level. In this case, a 1 for 2 or even 1 for 3 positions VLNS to attract serious investment pools that often will only invest in $5.00 minimum priced shares.

This is all about liquidity and enhancing what is obviously a very under-valued company.

My last consolidation experienced was Victoria Gold, which went on to appreciate from $4.50 to over $21.00 betwen March 2020 and Sept 2020, a 5-bagger in 6 months!