StageZero Life Sciences Ltd T.SZLS

The 2:1 consolidation

[LithLover]

The 2:1 consolidation is to give the company the ability to use it in the next 12 months.  It's not a 8:1 or 15:1 it's a 2:1.  They have over $6 million in the bank with similar revenue coming in Q2    (Q2 filing due Aug 16). 

They don't need to do a 2:1 consolidation to finance.  They have more than enough room in ther share allocation if they wanted to issue new shares but with $6 million and basically break even for the next couple quarters why would they?

Now lets say they reach $2 or $2.50 and look at the 2 options. (Yes I know that is a big assumption)

1) No preapproved consolidation so the share price hits $2-2.50 and they ask for a vote to do a 2:1 to uplist.  What do you think the shorts would do.  Pile on and push it back down to under $2.  So a share consolidation happens but they don't meet the Nasdaq listing requirements and the whole cycle happens again.

2) They get pre approval.  Stock hits $2-2.50. They halt the stock announce the 2:1 consolidation and open on the nasdaq. No opportunity to short.

There is a specific reason they only wanted 2:1.  They could have asked for a 10:1 and just went there but they know the fall out that would be on shareholders and they have to show they have plans to move the share price first.

If they don't reach $2 or more it wont happen anyway so nothing lost.   And a midnight consolidation and uplist is more appealing than letting the shorts get in the way.

In hindsight the 8:1 didn't work, the Aristotle roll out was not well planned and the company is getting better but the marketing is still underwhelming.  But that's the past.  They know they need to complete the Care deal, increase marketing, work with larger empoloyers etc.  Tripp mentioned all these milestones being necessary in the confrenece call.

So assuming they do these things whats the best way to get uplisted:

1) Get pre approved for a 2:1 consolidation and use it after achieving $2-2.50
2) Ask for a vote after acheiving $2-2.50
3) Organically get to $4-5

Ideally all shareholders would like #3 but is that realistic and how long will that take? 

If we can't have #3, #1 seems a better option given the recent activity of the shorts than option #2.

[ThanksForPlayn]

Classic stockholm syndrome with here, cheering on another reverse split even though another R/S will dilute you into oblivion. LOL Maybe it's time to move on kiddo. You obviously have no idea what you're talking about in regards to what a reverse split does to shareholders.

[Mykndrsn]

This all makes logical sense but the risk averse frightened puppies who for some reason are invested here don't care. Fear is their only reaction to things they can't comprehend. Risk is not for everyone but it would be nice if the easily frightened could control their angst it's embarrassing.

[Jonnyboy85]

Despite my misremembering the previous years consolidation request ratio I still see it the same and agree with you. They could just ask for 10 to 1 and put us on the Nas tmrw. There's a specific reason they're asking for 2 to1 and it's likely just a contingency plan in case our sp doesn't get to the $5-$6 range or whatever we need in canadian for the Naz on its own. They aren'

[molotov420]

That is nonesense. If you are an actual shareholder and value your investment, VOTE AGAINST the consolidation. If you give them the option to do it whenever they want, SZLS management will just do it at a random time, just like the 8:1. Keep your shares people! If they get to the $2.50 zone then lets talk. Until then they shouldnt have the option! I can tell you my shares will be voting against.

[Mykndrsn]

Get a grip

[Dez331]

Do you ever say anything contructive or just get frustrated when disappointed shareholders voice their honest opinion. Trying responding with facts or information. You are the joke mykndsn

[Mykndrsn]

Hadn't put  you on ignore yet. My mistake.. There you go. 

[Jonnyboy85]

Sorry dude, but why would they just use a 2-1 split for no reason and at random? How would that benefit anyone? No one stands to gain from a random 2-1 split, even the calls for dilution are silly because 1. we have 6.5 million in cash, 0.9 mil in working capital (almost more important) so dilution isn't really necessary unless there is a colossal development that necessitates it, especially

[Jonnyboy85]

your first hint that your opinion on the 2-1 might be wrong is that 4bash4ever and the newly created dez are agreeing with you lol

[IainCaimbeul]

This post has been removed in accordance with Community Policy

[RelevantStock]

Hahahaha best argument so far, diamond hands trophy goes to jb85

[Mykndrsn]

Just another emotional outburst. Logic and reason has nothing to do with it.

[molotov420]

Here you go, straight from the circular with my comments highlighted: Background to and Reasons for the Share Consolidation The Board believes that it is in the best interests of the Corporation to reduce the number of outstanding common shares by way of the Share Consolidation. The potential benefits of the Share Consolidation include: 1. Preparation for potential US listing: the Corporation is

[Jonnyboy85]

You don't lose shares man, you obviously don't understand what a consolidation is. To make it as simple as possible, they take 2 shares worth say $1 and make them 1 share worth $2, so if you had $20000 in shares before, you'll have $20000 in shares after. For you and me it has zero impact, the benefits are that if we say get into the $2.50 to $3 range we can uplist to the naz with a

[LithLover]

Bang on and they are only asking for a 2:1.  Basically saying they expect the share price to be north of $2-3 in the next 1-12 months.   

[4real4ever]

Lithloser you said the same thing when they do the 8:1 10 months ago  LMAO

[LithLover]

So name calling and bad grammar is how you debate a company strategy.  Gotcha.  Keep shorting and distorting a cancer detetction company.  I'm sure the family is proud.  

[4real4ever]

"STRATEGY"

[molotov420]

looool I take offense to the implication that I don’t know how a share consolidation works. You thought I was just convinced that half my investment would disappear? Come on man. The problem is that the share price tends to drift back down to the pre-consolidation price due to the “artificial” increase resulting from a RS, especially when there is negative sentiment already and the price has been

[molotov420]

Lets see some Aristotle revenue on the quarterly report, then talk to me about a RS. SZLS has no chill man! Take it easy on us....shyyyt

[Jonnyboy85]

I didn't mean offense, I saw you write something about only having half after and I figured thats what you meant. Listen I get it, we all do, i would much prefer our sp hit $6 without any consolidation and skip right onto the Naz without any trouble. But if we hit $2 or $3 and we have a chance to get on the Naz for a brief window, why wouldn't we want that? With how volatile we can be we

[kodiakup]

- I do not see any advantage to a split again ... 2: 1 to return to $ 1 that would be for what !!!!! - Very rare the split which gives good result....  -The market does not like even if you say the opposite - Give me some good news that would raise the sp above $ 2 and then yes do a split .. that would    be the right cenario... - Nothing less .. if not it really

[molotov420]

Exactly right Kodiak...Everyone needs to remember that the deal isnt done. Its up to us to approve or vote against now. I will be doing the former and have quite a few shares to back that vote. Hope all longterm holders will do the same!

[molotov420]

looool the latter I mean, jeeez just vote against hahah