Ann: WBT & Leti to partner on artificial intelligence, page-64

I don't get this idea.
So you want to do a CR. SP was sitting at about 3.5c. Let's say you want to raise $10 million. Market cap was about 55 million. Say you want to raise at a HUGE discount for some reason - 40%. That's a CR price of 2.1c, bringing the pre-issue market cap to 33 million and the dilution is 23%

So, supposedly, consolidation first is better. You consolidate 25:1. Let's say consolidation only causes a 10% drop, that brings the new market cap to 49.5 million and the new SP to .788 . Then you discount 40% to a CR price of .473 and the pre-issue market cap is now 29.7 million. The dilution is now 25%.

Assuming consolidation had no short-term effect on market cap, there would be no difference in the above two scenarios, all the figures besides share price would be identical. But given it is extremely unlikely that consolidation will raise the valuation in the near-term (i.e., before this hypothetical CR is going to take place) and is very likely to lower the valuation because of the skittishness of the markets, this idea that consolidation is somehow preparation for a CR makes no sense. It would only make sense if it could reduce the dilution - but that only happens if the share price goes up further after consolidation.

I just don't buy this consolidation for capital raise conspiracy at all.