Johnbeth, if there was a consolidation, nothing about the value of the company changes.
If you had bought 200,000 shares bought at 1 cent costing $2,000 and a 10:1 consolidation occurred you would end up with 20,000 shares at an average price of 20c equals your original cost of $2,000.
No reason for a diminution of value simply on account of a consolidation.
Share consolidation can have a number of purposes, however I suspect it's on the agenda because they are taking over an American listed company, and investors in the States don't like penny stocks. A certain share level price can dictate whether certain classes of professional investors and mutual funds are allowed to buy in, pursuant to their charters.
Interesting action recently and the HC report kicked it along. Had a small dabble today @9c and will be holding for a while.
Good luck to all.
HotCopper Coverage, page-7
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