They are bound to say that aren't they
Quote:
Originally Posted by
Monty
...there is one comment in the letter
In addition, it is anticipated that the price at which VMob Shares trade on the NZAX Alternative Board immediately following the Consolidation should increase relative to the Consolidation ratio
So with the consolidation VMob are expecting a lift in the share price. Would this be because the penny dreadful status has been left behind?, or because of the impending lift in exposure, (especially on the ASX) or maybe an announcement, or maybe release of the Year end results?
...
Quote:
Originally Posted by
robbo24
Monty,
They simply mean the price will increase by 25 times because there are 25 times less shares. They don't mean the MCAP will increase.
They don't mean people will be willing to pay a premium over the current MCAP just because there are less shares...
No Monty is right and robbo the Grinner is wrong.
They ARE saying that they expect the price to rise above the ex-consolidation price.
i.e. 2c x 25 would be 50c they then expect it to go to 51, 52... $19.99.
But as they give absolutely no justification for this statement they are
RAMPING THEIR OWN SHARES.
Best Wishes
Paper Tiger
Comprehension isn't a strong point around here
Er, read it a few times. I agree with robbo -
key words - immediately following, and relative to Consolidation ratio
They would not, and cannot give a prediction for the share price post-consolidation.
Look to ASX mining juniors for an indication of what happens post-consolidation - almost always down unless there is a compelling piece of new news to get bullish over.
They're also going to dilute shareholders even further aren't they?