The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Close enough...
4.1 The event is
+Security consolidation
4.1a Consolidation ratio: the +securities will be consolidated on the basis that every
2,800
(pre-consolidation) +securities will be consolidated into
1
Didn't SAS holders get 38 shares for every 100,000?... and the tin rattle reset.
I think the Aussie shares should be consolidated in par with Lse shares IMO. Bought at 8p when it was floated here in February which I believe we are main listed stock.
At some point....they may well do a consolidation..
2.2 billion shares at 4p is the same as 220 million at 40p...although they probably go 5:1 ish rather than my example of 10:1
Thanks for clearing that up guys. You learn something new everyday!
This firm listed as a loss incuring business, with the potential for growth. Therefore the amount of money the firm wanted to raise, meant billions of shares were issued to raise that capital.
They're unable to buy back shares until they make a decent profit. If they make a profit they will have the liquidity for either buybacks, dividend payments or use profit for investment for growth.
As the revenue situation improves with further sales this is likely to reflect in an improved share price. That's if costs don't escalate as well.
Also cash might run and and they come calling for more liquidity, which means more shares and dilutions.
Warrents could be exercised too, which means more shares in issue (that's shares board members or staff can buy at a lower locked in price).
It's not as straightforward as that. There are 2.2 Billion Shares in issue. MGC's work to get the foundations right are just starting to convert from promise to sales and revenue, the money is needed to grow the business further especially as they have the vision of being a 1-2 Billion company.
By the end of 2022 we'll have a very good idea of where this is heading. Long term hold.
May well be a stupid question but I am asking it anyway. Why don't MGC just issue less shares or just buy them back as I know there are well over a billion shares. Surely they will make more money for the company and other projects that need funding if there is a high demand but less supply? Oh, and plus this would make existing traders happy :)