10 for 1 consolidation has no effect on the real value of your shareholdings. You have less shares but they are worth proportionally more. In IGS's case you have 10x less shares but your shares would be worth 10x more for a net effect of 0 change.
It's an administrative thing. For IGS 270M shares on issue is more easily manageable than having 2.7Bn shares on issue.
If a company was worth $100m, had 100 shares on issue and consolidated 10 for 1, it would have 10 shares in the end but would still be a $100m company.
If you had 20 of those shares (worth $20m) pre-consolidation you would have 2 shares post consolidation which is still 20% of the company (2 of 10 shares). The company is still worth $100m so you still have shares worth $20m (20%).
The REAL issue is:
Dilution from cap raising
Dilution from advisor issue
Purchase price of SF and it's debts in shares/cash
10 for 1 consolidation has no effect on the real value of your...
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
