New Found Gold Corp V.NFG

Alternate Symbol(s): NFGC

Metals & Mining Gold

New Found Gold Corp. is a Canada-based mineral exploration company. The Company is engaged in the acquisition, exploration, and evaluation of resource properties with a focus on gold properties located in Newfoundland and Labrador, Canada. The Company holds a 100% interest in the Queensway Project, which comprises an approximately 1,662 square kilometers area, located about 15 kilometers (km) west of Gander, Newfoundland and Labrador, and just 18 km from Gander International Airport. The Queensway Project is divided by Gander Lake into Queensway North and Queensway South. The Company also owns a 100% interest in the Kingsway property, which consists of 264 claims on three licenses covering approximately 77 square kilometers. The project is located approximately 18km northwest of the town of Gander, Newfoundland. The Company is undertaking a 650,000-meter drill program on Queensway. It has royalty interests underlying Keats South and several additional zones in Queensway.

TSXV:NFG - Post by User

New Found Gold Corp > FYI -- Jul 27 2021 Final short form prospectus -- SEDAR

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Comment by AlwaysLong683on Aug 04, 2021 9:00pm

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Post# 33652815

RE:RE:RE:RE:RE:FYI -- Jul 27 2021 Final short form prospectus -- SEDAR

diabase1 wrote: Even a 3 for 1. By tripling the outstanding shares, this wouldn't change the ownership %'s for present holders and it wouldn't change the market cap. The latter will change with the drill bit. However, a change in price with the split brings the price down to $3.13 Cnd. There would also be an extra 300M+ shares to be bidded for by the institutions. Just my opinions, right or wrong!!

In my experience, the only times I've seen a stock split is when a company believes its share price has grown very high and believe a share price cut via a share split will make the shares more attractive and affordable for smaller investors who desire to purchase board lots. $10 a share is not even close to an overly-expensive share price as a 100 share board lot can be had for $1,000.

Conversely, CP Rail's recent shareholder approval of a 5 for 1 share split on April 21 took place at a time when the share price was in the neighbourhood of $450 a share (if memory serves). It now trades at just over $92 a share.

In fact, I believe it's more common to see companies refuse to initiate a share split even when it would seem to make sense than it is for a company trading under $50 to initiate a split.

For example, the following companies have been trading at a high share price for various periods of time and still have not initiated an effort to produce a share split:

CSU $2,025.03

SHOP $1,952.01

BYD $242.96

In fact, I don't think anyone can name a Canadian company who did a share split when their shares were trading at say, under $50.00 each.

Knocking NFG's price down so low makes it look more like a penny stock than a company that is growing and on the move.

Also, some large fund managers / other investment entities may not even look at a stock trading below $5 or $10 a share, so keeping the share price at least above $10 would, in my view, make it more attractive for large investors than knocking the share price down to well under this price for no good reason.

Not trying to be harsh with my words - just stating my views on the matter.