RE:RE:RE:RE:BREAKING NEWS these were their reasons at the time..
Reasons for the Share Consolidation
The Board believes that is in the best interests of the Company to have the authority to implement the Share Consolidation for the following reasons:
(1) Greater investor interest – a higher post-consolidation share price could help generate interest in the Company among investors. A higher anticipated share price may (i) meet investing guidelines for certain institutional investors and investment funds that are currently prevented under their investing guidelines from investing in the common shares at current price levels; and (ii) allow investors to leverage their investment by meeting margin eligibility requirements;
(2) Potential listing on a more senior stock exchange – a higher post-consolidation share price could help the Company meet the initial listing requirements of more senior stock exchanges in Canada and the United States in the event that the Company determines to pursue such a listing;
(3) Reduction of shareholder transaction costs – shareholders may benefit from relatively lower trading costs associated with a higher share price. In circumstances where commissions are based on the number of shares traded, investors pay lower commissions to trade a fixed value of shares where the per share price is higher; and
(4) Improved liquidity – the combination of increased interest from investors, a potential listing on a more senior stock exchange and potentially lower transaction costs could ultimately improve the trading liquidity of the shares.