Ann: Rig Secured for W-Erregulla-2 & Prospective Res. Increase, page-33

Hi Kiwi, I have only experienced consolidation a couple of times (TER & EUC just examples, not cross promoting, I no longer hold either). Basically your number of shares reduce and the sp multiplies by the same ratio. In this case 20 to1.

For eg. say you bought 1mil shares averaging .009c or $9000 worth. The sp has for whatever reason dropped and at consolidation time is .003c and your shares are now worth $3000. Post consolidation you would have 50,000 (1mil ÷ 20) shares at .06c (.003 × 20) still worth $3000. To see your original $9000 again the sp would now have to reach .18c.

PRL's consolidation is in conjunction with an RTO. I've not been through this before so maybe a more experienced poster could elaborate on what to expect sp wise post consolidation. Sometimes post consolidation the sp can drop and what shares you have left are worth even less again. The reverse is also possible. All depends on what's happening with the company fundamentally at the time.

Pros - many investors prefer a certain price point before they'll take a position. TER shares became more liquid post consolidation and gained steadily on improving fundamentals.

Cons - company fails to deliver on timelines or other issues arise and sp falls back and raisings with new shares issued dilutes the post consolidated sp aka rinse and repeat.

Some positives for PRL if it all goes through -
The baggage of toxic DC and co gone, new name, fresh management and an expanded selection of promising projects close to drilling.

I won't be buying anymore just yet. Going to sit tight for a while and see how things go.

Good luck.