Ann: Cardia announces proposed merger with Stellar Films Group, page-24

If it doesn't happen, the price will drop again to current levels, hence as we keep telling you, destroying 90% of our wealth.

If it doesn't happen it will destroy 100% of your wealth regardless. Stop trying to make it sound like only a consolidation could do this. Ownership of a failed company returns you zero no matter how many shares. You think companies that drop considerably after consolidation wouldn't have continued to drop anyway? Of course they would. As I said for most companies, with a history of losses and issuing shares, consolidation is only for the benefit of being able to continue that trend. There are companies on ASX sitting at .1c that you can't even get out of if you wanted to, CNN is .2 of a cent, and it's been near this level for way too long now.

Or are you saying that the number of shares on issue is preventing CNN from becoming profitable? That appears to be your bottom line.

No I never said this. What I said is the current penny share status is preventing the marketcap from reaching its rightful level. This in turn creates far more share dilution when they have to raise more shares. That's why there's billions of the suckers right now and will be billions more soon. Lack of consolidation has already cost investors a lot in extra unnecessary dilution. I can throw your statement back at you, that having a consolidation will prevent CNN becoming profitable? Of course not, but it will attract more investors.

Make profits, start paying dividends and the share price will take of itself.

This company won't be paying dividends for years even if successful. Yes the share price will eventually take care of itself but int the meantime will continue to sit at a considerable discount to where it should be. At the moment investors don't even look past the number of shares on issue to look at the great story unfolding. I think the company will consolidate shares along with this merger if it goes ahead. Let's see.