RE:RE:RE:RE:The 2:1 consolidationHere you go, straight from the circular with my comments highlighted:
Background to and Reasons for the Share Consolidation
The Board believes that it is in the best interests of the Corporation to reduce the number of outstanding common shares by way of the Share Consolidation. The potential benefits of the Share Consolidation include:
1. Preparation for potential US listing: the Corporation is looking to prepare for a possible future listing on NASDAQ or other senior US stock exchange. The higher anticipated price of the post-consolidation common shares may help make the Corporation eligible for such a listing.
Show us an uptick in SP and then we can vote to consolidate. I dont want to give them carte blanche to it whenever they want. Because they have and will do it again at an arbitrary time. The 8:1 didnt get us anywhere close to NAS and thats what they said it would be used for last time.
2. Greater investor interest: the current share structure of the Corporation may make it more difficult for the Corporation to attract the additional equity financing required to maintain the Corporation or to further develop its products. A share consolidation may have the effect of raising, on a proportionate basis, the price of the common shares, which could appeal to certain investors that find shares valued above certain prices to be more attractive from an investment perspective.
We were above 1.10 before April. Get back there organically to attract greater investor interest. I dont want to have 50% of my shares for nothing. Investors are looking for results not RS after RS.
3. Raise additional capital at a higher price per share: the higher anticipated price of the post-consolidation common shares may allow the Corporation to raise additional capital through the sale of additional common shares at a higher price per common share than would be possible in the absence of the Share Consolidation.
If they dont need the money then this point is moot.
4. A tighter share structure could potentially make the Corporation less attractive to computerized algorithmic trading. This in turn would allow the share price to rise with less downward pressure from day trading.
This one is just funny. no explanation needed its 2:1, not 100:1
In summary, VOTE AGAINST the consolidation. If they dont plan to do it anyway then we will be in the same place just no chance of them doing it randomly. Seems so obvious that this is a bad idea. Why try to spin this as a positive thing!