A 60-to-1 share consolidation by what’s left of the Donner Metals (
TSX:V.DON,
Stock Forum) executive team
went through on December 30, without a trade halt, which saw investors waiting for their newly reconfigured shares to show up on trading platforms as the share price effectively halved.
The consolidation, approved by shareholders in early December after the
company warned that it would cease to be a going concern if not approved, and with millions of half-cent asks on offer with no buys to speak of, was always likely to be a prelude to a price drop, as Donner looks to liquidate assets and return some value to investors.
But with most share trading platforms needing several days to reconfigure Donner shares for users,
Donner didn’t see fit to halt trading, which would have given all traders a level playing field.
The result is yet another case of heartbreak for investors that watched the company collapse when it announced, just weeks after a private placement closing, that it
couldn’t pay for its share of the Bracemac-McLeod mine partnership with Glencore Xstrata (
OTO:GLNCY,
Stock Forum) and Sandstorm (
TSX:T.SSL,
Stock Forum). That failure resulted in a forfeiture of their stake in the project.
Stockhouse Bullboarders report the company is
refusing to answer questions from investors in writing.
Donner shares opened post-consolidation at $0.20 per share (down from a pre-consolidation price of $0.30 after the 60:1 rollback) and dropped to $0.16 by the end of the first day of trading. They trade at an all-time low of $0.14 at the time of writing, with an $843k market cap and 5.3 million shares outstanding.