From the AGM Booklet:page 23
Background to and reasons for the Consolidation
The Board believes that it may be in the best interests of the Corporation to reduce the number of outstanding Shares by way of the Consolidation. The potential benefits of the Consolidation include:
Greater investor interest - a higher post-consolidation Share price could help generate interest in the
Corporation among investors, as a higher anticipated Share price may meet investing guidelines for
certain institutional investors and investment funds that may be prevented under their investing
guidelines from investing in the Shares at current price;
Improved trading liquidity – an increased interest from investors may ultimately improve the trading
liquidity of the Shares;
Raise additional capital at a higher price per Share – the higher anticipated price of the postconsolidation common shares will allow the Corporation to raise additional capital through the sale of
additional common shares at a higher price per Share than would be possible in the absence of the
Consolidation; and
Ability to meet listing requirements on certain senior stock exchanges – certain senior stock exchanges have a minimum trading price requirement for listing, which levels may not be able to be achieved without the Consolidation.
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