RE:RE:RE:TLO Needs 1 to 30 shares consolidation
Maxmoe wrote: I'm guessing your question was rhetorical, but in case not, and for those that don't get it .....It mathematically makes no difference whatsoever. However, believe it or not, there are many investors, especially naive retail investors, that think a $10 stock is better quality, lower risk than a 33 cent stock. Sadly, too many don't consider the number of shares outstanding and do the math to calculate the actual enterprise value of the business. Practically speaking, the exchanges, the brokers, the banks do use stock price as a measure of "quality" or risk so it does affect things like eligibility for a listing on the nasdaq, or the amount , if any, margin that your broker or bank will allow. Most allow zero margin for stocks under $3 and offer less under $5 than at $10. The downside is the rules for borrowing stock to sell short is also cut off as the stock goes lower. Most brokers prohibit shorting any stock under $1. But for something more critical, like how much a buyer pays for 100% of the company, the price per share is completely irrelevant.
Next steps? Just doing a reverse split won't change much. Doing a huge reverse from 33 cents to $10 SHOULD reduce the tendency for roll ups to slide right back down to the pre roll up price. Hopefully, it's just too far a slide frim $10 to 33 cents. Gulp. So what's next might include a listing for an American critical mineral deposit, on an American exchange. Like Amex or nasdaq. But moving the domicile jurisdiction to the USA would also be a helpful next step. The BVI or other Caribbean island jurisdiction is just not as solid in Washington or on Wall Street as say New York , or Delaware, or what? Minnesota? Where the future mine will be? All this will help with financing and government incentives.
and the stock price.