they are having a tidy up

  1. 3,353 Posts.
    I see they are buying back all of the unmarketable parcels of sh'ers with less than 10,000 shares (ie $500). The previous year's annual report reckons there are 1732 shareholders in this range controlling less than 1% of the company, but making up 31% of the company's shareholders.

    I remember reading somewhere that sh'ers can cost between $50-100 a year in compliance/printing/registry costs/company time etc, so they could save close to $100,000 per annum here.

    $100K is worthwhile I suppose, but is there another reason why they want to clean out these shareholders? This comment is pure speculation - has to be a forerunner to a capital reconstruction. Imagine having to reconstruct all those tiny parcels, would cost them a packet. By cleaning the problem up now, would save on reconstruction costs for sure.

    Huge signal for me that a recon will happen.
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