RE: Always placing.23 Nov 2020 22:40
Yes, consolidation increases the price per share by the factor of amount of removed shares. So for example if there is a 4 to 1 share consolidation the maths is below;
You have 600,000 shares at 0.20 = £1200
After consolidation you would have 15000 at 0.80 = £1200
Share consolidation on shares with billions of shares in issue can generally be a good thing as it makes volume/liquidity move the share price more naturally.
The main issue with consolidation is that it allows the BOD to effectively reset the equity raises and allows them to very easily start issuing shares again.