NewSat proposes share consolidation

NewSat proposes share consolidation

Satellite company Newsat (ASX:NWT) plans to conduct a 50 for 1 share consolidation to help improve its trading price.

The company on Friday proposed to shareholders to reduce its 8.8 billion shares on issue to a more tenable number. NewSat has a market capitalisation of around $88 million.

The large number of shares is keeping potential institutional investors away, as many would have policies precluding them from investing in companies with a share price in the region of a fraction of a cent, NewSat said.

Post-consolidation, the company would have around 176 million shares.

Fractional entitlements will be rounded up. As part of the plan, investors holding shares worth less than $2,000 will be given the chance to either sell off their stakes, or buy additional shares worth at least $500 and up to $5,000.

Shareholders will vote on the proposal at an EGM on October 17.

NewSat is in the process of transforming from a satellite services reseller to the operator of its own fleet of geostationary satellites. Its first craft, the Jabiru-1, is scheduled to launch in late 2012.

NWT shares grew 20% in Friday's trading to $0.012.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags satelliteNewSatshare consolidationASX:NWT

Show Comments