Just a way of getting around the nominal value of a share, BMR shares nominal value 1p, r&r means you cannot issue new shares under 1p, rights issue,placing etc When the division happens, the £0.009 share will classed as deferred, they lose most of normal the rights. You still have the £0.001 shares, they have the same rights as before, but now nominal value is 1/10th of previous nominal value. As long as no other shares have been issued, they still have the same percentage of total company issued shares, but the company can raise money by issuing new shares above £0.001 per share. Have a look at the example below.
Following that like of thinking and I don't know the answer, let's say for arguments sake the SP falls to 0.25p (75% drop) if we then consolidate at 10:1 it becomes 2.5p, then why would Alex Borrelli think its a good idea to drive down the par/nominal value even further?
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