re ii account/consolidation1 Jun 2010 18:20
The Consolidation is subject to shareholder approval at the Annual General Meeting to be held on 23rd June 2010. Following such approval, the Consolidation is expected to become effective on 24th June 2010. The New Ordinary shares are expected to be credited to your account on or after this date.
The Board believes the proposed Consolidation would be beneficial to the Company and its shareholders as it would reduce the share price fluctuations caused by small volume trades, assist in decreasing the bid/offer spread, improve the attractiveness of the shares to new investors and retain a suitably low nominal value per share.
When a company consolidates its share capital the number of shares in the Company reduces. This will impact the share price as the total value of shares will remain the same but there are less shares in circulation, so the price can increase significantly.
You may therefore notice an increase in the share price before we are able to update your account and provide written notification of the effect on your holding.
If you are uncertain if the Consolidation has become effective please check with our Call Centre before selling your shares as you will be liable for any oversell in your holding.
No application is being made for the Deferred shares to be listed on the Official List or admitted to trading on any stock market or securities exchange. These shares have extremely limited rights and benefits attached to them rendering them in effect, economically worthless. These shares will therefore not be updated on your account.
As i see it if one holds 20,000 shares @ 0.01 then one will be left with 200 shares at £1 minus a loss of £20 (deferred). i feel share holders will have to take the small loss to let the sp grow to a realistic value making it well worth the vote.goodluck all.Red
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