Chuck, do you have the circular with you at the moment, I don't, forgot it at home? If you do, was the verbiage on the reversal "up to 15:1" or was it strictly a 15:1 clause, I don't recall for sure.
The only rationale I can see for the 15:1 consolidation would be if they were to execute a share based acquisition that was capable of increasing current value by 300-400% and then went after the U.S. listing again. Then we would be in the share price category to enable that type of a move. We would be starting at approx. $1.50 after a 15:1, Like I said, I do NOT support a consolidation of that magnitude, whether I can see a potential rationale for it or not.
A 5:1, for instance, would leave approx. 6M shares out, if we did a share based acquisition for equal company value, that would mean issuance of another 6M for a total of 12M out. That, I can see as being a solid position to be working from. If the combined entity was able to secure say a $1.50 per share value, supposing that combined they were able to justify a 50% premium over current share price (.10*5*2 = $1.00 + 50% = $1.50), then a 3M share financing would garner $4.5M in working capital and we would have a company with 15M shares out. I can see that as solid target. And we may never have to see another financing dilution again.
Just some thoughts, discussion invited, expected, welcomed, etc.
Salut,
Leigh McBain |
