RE:Reverse stock splitGoatburner,
We are clearly on the same side of the "Reverse Split topic" in that we both see it as inevitable and useful, not from a financial engineering point of view (which, in my experience, has been sometimes invoked by companies in financial trouble), but for more strategically astute reasons.
I do not particularly agree when you indicate that for Electra Battery Materials "A reverse stock split is necessary to enlarge the so-called slice of pie bigger so that it can better react to market forces and good news on progress as we go forward".... I prefer the rationale outlined in the Principal Reasons for Effecting the Consolidation page 16 and 17 of NOTICE OF ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS... which was published a few months back: (Extracts)
- First, the Company believes an increased Common Share price will allow it to attract certain individual and institutional investors who have minimum share price thresholds for equity investments, which thresholds preclude them from investing in ‘penny stocks’.
- Second, the Company may pursue a secondary listing on a securities exchange in the United States, which has certain minimum share price requirements. The Company believes that a secondary listing could attract new investors given the strong demand for equity investments in battery materials, recycling and electric vehicle companies in the United States.
- The third consideration is the timing to affect a Consolidation. Management has studied many consolidations and believes that in order to be successful, they should be preceded by a significant event, milestone or catalyst.
We still both agree in the Reverse split process and that it will happen at some opportune time.
Peace,
Good Decision-making to All,
ElJ