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John - most companies consolidate so that it’s easier for them for future placings.
I’m unfortunately invested in wres, they recently consolidated and have further diluted us since.
They are similar to Copl in that they have a steady income from mining yet the sp keeps falling.
What is another way of marketing shares in order to fund operations, other than placing?
I have no idea why they would want to do it; again it was the BOD who stated in black and white that this was the purpose of consolidation.
I am the messenger, literally quoting corporate comms.
@John1970 try again pal.
It's your hallowed BOD talking placings, not me.
They explicitly stated that "marketability of the common shares" was the purpose of the consolidation.
Management Information Circular
May 25, 2021
Page 13
"Basis of Consolidation
The Board is of the opinion that, in the future, it may be in the best interests of the Corporation
to effect the 2016 Consolidation and the Second Consolidation, and such consolidations may
enhance the marketability of the Common Shares and could facilitate additional financings to
fund operations in the future. "
I'm aware of the reasons for the current price action, but I think my point stands.
I'm not just talking about me, I'm thinking about how investors will see the company if that occurs, because how they perceive a rapid-fire second fundraise after relisting, and price drop from pre-suspension price, is going to affect their attitude to investing in the stock. Sentiment matters.
Noob is right though that if it is an incredible deal on Cuda's assets for example, investors may not have a problem with it. But it may not be that, we don't know, it may include extra for development, which again may be received well if it comes following a commercial discovery, or not if more exploratory. But whatever it's for, doing it at 0.32 is not what anyone hoped for.
And again, there may not be a placing at all.
Correct Noob
until the meat and bones revealed , could be a great result or Arty stepped in something
nasty AGAIN
My hope as said is that it is a measure to attract that upper tier core INVESTOR that will
bring about better quality and supported company growth , that will stick around and
any future raises on a rising Market cap and share price with limited dilution not the
confetti wonga lenders we should now be looking to leave behind
A Main Market Oil and Gas PRODUCTION company set for years of growth , no longer
part of the pump and dump survival financ exploration rainbow chasing group of
companies
:))
Need to do some market research m8 , the share price stuck do to mass confetti dilution
with a set of wonga lenders not investors and until they have dumped like a million
shares before us held down by their sells stifling any rise
They have no interest in the company just squeezing quick safe profits from discounted
issues , placings at 0.20 and 0.32 and warrants out their at 0.15 0.26 0.39 will still be making
a nice profit from return at 0.6p sold down to current levels
:))
and good to see you on this board tedoby
if so a provider of some very in depth stuff on another board I was on
similar to Charlie and Tiburn level knowledge and tech nouse
:))
Spot on Lok, its that simple
One better reason to attract and bring on board a DIRECT INVESTOR not another wonga
lender, that investor may bring dilution but will support not stifle the company
:))
The point is that there was a raise for an acquisition and the share price is much lower.
So we hope for a far higher share price before another placing and acquisition. Because so far there's no shareholder value.
I'm not saying there won't be shareholder value going forward, but you might forgive the concern if a large placing occurs at circa 20 percent lower or more than the pre-suspension price. And again, I'm not saying there will be, we don't know.
A raise after consolidation, but what you have missed is the reason behind such a raise which would be for acquisition, no other reason to do so, an acquisition which would add value to the BS and P&L. Some have shown their true colours this weekend - pathetic.
spot on tedoboy.....
Slightly different rhetoric - seen a few posts with - THIS IS HAPPENING!!!! Now it’s a “Who knows what’s happening?” Lol. GLA
Nice post tedoby spot on.
It was one poster that kept pushing the word PLACEMENT in many posts that pushed buttons in individuals.
Posters that I thought were level headed came out sounding ‘not there usual self’.
With the big news in the pipeline that has been researched and discussed to death on here, if there ever was consolidation needed then it’s on here.
Great post Tedoby. They proteth too much
Consolidation and Dilution are entirely different Corporate Actions. So why link them together in the same debate unless it’s done for mischievous reasons.
FWIW I think in this case Consolidation is quite likely given it’s already been muted. In so doing I believe the intention is to improve the company’s perception and possibly re-classify the shares to suit other markets along with encouraging Institutional Investment and such like.
On the other hand I see no justification that further equity equity will be released at or near the same time.
Placings can’t always be classed as Dilution anyway. If releasing equity subsequently leads to an increase in value (the Market Cap) in a positive ratio to the increase in the number of shares released then the action must be regarded as Accretion. Not Dilution.
Under the current market conditions and potential opportunities I very much doubt any future equity releases will be dilutive. By intention they will be value enhancing and accretive in my view. At least in the short to medium term with growth and increasing shareholder value featuring so high on the company’s agenda.
The reason why the SP is where it is there has been more sellers than buyers since relisting. Simple reasoning and math since the last placing justifies the fact that there is absolutely nothing untoward going on here. The SP won’t be staying down at this level very much longer in my opinion.
Those that disagree should either sell or stay silent until they’ve done their own calculations and are prepared to share them to support their innuendo. The pathetic FUD created here by some with an obvious trolling agenda is less than discrete and hopefully genuine shareholders won’t be taken in by it .
AIMHO