Luppo71
Founding Member
Love the idea of a 5/1 split but if the SP stays at 20c and we still need $4US then its a 30/1 split or even worse if it keeps going down.Hi yogi,
The NYSE has a minimum share price and income requirement. I've seen values between $4US and $6US quoted, so say $5US for rgument sake. So there needs to be an adjustment of the number of BRN shares to equate to the required share price. If we assume ASX is valued at $1US at the time of rehoming, that would require a "consolidation" of BRN shares by a factor of at least 5 to get the BRNUS share price above the $5US threshold, so we'll use 5 for simplicity. So if you had 100 BRNAu shares, that would be 20 BRNUS shares.
The adjustment to US dollars does not affect the calculation of the proportion of shares you own, because it cancels out of the equation, applying to the numerator and divisor.
The point to note is that this consolidation is applied to all BRNAu shares, so, if there were 200,000,000 BRNAu shares on issue, that would be consolidated (divided by 5) to 40,000,000 BRNUS shares. This means you still own the same proportion of the company in BRNUS shares (20/40,000,000 = 1/2,000,000) as you did in BRNAu shares (100/200,000,000 = 1/2,000,0000).
Lets hope it dosent get to that or they have some news.
Good luck all.