Ann: Investor Presentation - Winx-1, page-38

Desleysauce,

All good and great to see new investors onboard.

Thanks to @usc2008.

If you don't mind I'll apply some numbers to the thought process, not that it's happening.

88e have 6,331,540,324 shares on issue, at the current share price of $0.02 the market cap is,

6,331,540,324 x 0.02 = $126,630,806.48

Say Dave announced(hypothetical) there was to be a share consolidation of 20-1, so for every 20 shares you hold you will have 1 new share.

The thought is that less shares are on issue will increase the share price by a proportionate amount, thereby being more attractive to institutions and making it easier to raise capital via more share issues.

From the 20-1 example,

6,331,540,324/20 = 316,577,016.2 "new" shares on issue post consolidation.

As the market cap hasn't changed, it's still $126,630,806.48, shares on issue are 316,577,016.2 so the share price is,

126,630,806.48/316,577,016.2 = $0.40

Which happens to be 20x 0.02.

What ultimately happens though with a lot of spec company share consolidations is, that the companies often do not generate revenue to provide an underlying support to the share price this means the share price will frequently want to travel back to the level it came from. Means the cycle continues.

Dave has stated as much and is on record saying any consolidation would mean a 15% "haircut" to investors.

However...... nothing should ever be considered off the table.

Of course all of the above is produced as opinion and I'm often wrong.

Cheers, welcome, good luck and happy Saturday.