RE:RE:RE:RE:RE:RE:Share Consolidation...?Hedge99 wrote: They are not going to reverse split SIC. To get the SP to over a dollar to attract institutionals doesn't make sense, and not necessary. Typically companies do that so they can issue more shares and dilute the existing holders. Sprott would not allow that. This will move beyond a dollar in the near future.
Many institutions and other large investors usually keep their shares for a signficant period of time. SIC having approximately 70% of their shares held by a multitude of small investors makes them much more vulnerable to day trading, panic selling, etc. that can hurt the share price, or at least keep it down.
Reverse stock splits do not dilute existing shareholders, and you actually end up with LESS shares, not more, like trading 10 dimes for a loonie - same value, but 9 less coins with the one coin remaining worth 10 times the amount of any single dime you had previously. Share dilution comes, for example, when a company does an equity raise when their share price is low and offers the underwriters a discount to the current share price, or when options or warrants are exercised giving the holder of the option or warrant a share at a price far less than its current market value.
Also, I'm sure Mr. Sprottt knows that SIC will eventually have to issue more shares anyway as this is the only way for a junior gold exploration-only company that is not pouring and sellling gold to raise money to fund ongoing drilling, wages, and other expenses. If SIC needs say another $10 million, they'd actually be issuing a lot more shares at 0.30 than they would at 1.00.
Also, you say SIC's share price will move from 0.30 to over 1.00 "...in the near future". That would be a more than 200% gain from it's current price. What do you mean by "near future"..? One month? Six months? One year? Five years?