Did you ever hear of a company consolidating its shares by five million to one? Even Nortel did only a 10-to-one consolidation.
Ian Wollach bought 8,000 shares of Polyair Inter Pack Inc., a Toronto packaging firm, at $2 a share last year. Today, they’re worth 5 cents a share. His $16,000 investment has shrunk to $400.
Polyair consolidated its shares in order to to go private. Wollach thought the Ontario Securities Commission might protect minority shareholders in such a deal, which he considers a sham engineered to bypass requirements for a share valuation.
Annoyingly, Wollach didn’t get a response from the OSC until this week (the deal closed in mid-July). And he found the response next to useless.
I’m posting the letters below. Now I want to hear what you think.