Consolidation

[FuttBucker]

Tymers post on the other board got me wondering, but I don't want to feed the trolls on there so I thought I would ask here...

Is consolidation simply the smooshing (technical term) of several shares into one share? If we were to consolidate twelve shares of 12p each, would we end up with one mickey share of £1.44?

If so, do we really care if there is a consolidation? Or am I missing something?

[IanFTM]

Thats how i understand it - consolidation reduces the number of shares but proportionately (in theory) increases the value of each - so you still have the same value immediately pre and post consolidation. From a visuals perspective, based on your example, we no longer a re "penny share" and should become more attractive.

[DipSard]

Say you currently own 100,000 shares at 1p each
- your shares are worth £1,000.

A 100 to 1 consolidation leaves you with 1,000 shares now worth £1 each
- your shares are still worth £1,000.

So we're no longer as Ian says a penny stock

[zoros]

Try this:

https://realbusiness.co.uk/consolidation-of-shares

But it's got to happen @ GGP if it is to have its primary holding on ASX.
Z

[Racer28]

I like the idea of consolidation to remove the stigma of circa 5.3bln shares and lift away from a penny stock.
What caught my eye and raised my concern with the consolidation discussion, was the comment regarding the massive dilution of shares to insto’s, which could then give increased voting percentage over PI’s.
I haven’t looked at the specific quantities to confirm the percentage but seems plausible.
Millions of shares issued for a handshake and a promise, I truly hope the ‘A’ Team improve the future from our 8p doldrums and repay the PI’s who’ve supported with early investment.
Cheers, Racer