Also agree their will be a huge consolidation. Possibly 100:1 as you say. And that will hurt, because shares tend to head lower after consolidations.
Obviously your numbers were an example only, but 50c is obviously unrealistic. 100:1 = 30-40c
So any new investor would buy in at that range at best, but most likely at a discount.
That is true that in consolidations especially in a volatile market they often do lead to lower prices - but i think in this situation it will play a different card.
With the precentage of the registry that will undertaken the consolidation holding a stake equivaent to less than 20% of the company - the situation has changed the majority of the equity is now held in fresh hands with their stakes entered into at the price level achieved through the consolidation.
as for the actual form the consolidation will take and at which price i really have no idea but is not uncommon if such a large shift in the corporate structure is undertaken that it is realised at a premium to the current price.
i'll still punt on either 100/1 or 200/1 should they choose to relist above $1.
GL
MHL Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
