Some top companies have several billion shares but which have good value. Consolidation is not random. If a share price gets very low it will lose respect from investors for there surely must be a good reason for the sp being too low. Apart from a company having a bad product, issue of too many shares can dilute the value of shares if a company is not growing. The main problem is the effect on potential raising of capital by issue of more shares when the shares have little value and there is hardly any margin incentive. For example, how many shares would you need to issue to raise $10M from a 1c share price? That's right: 1B shares added to the register. Under that unlikely scenario and dilution you would have to carry out eg a 20 to 1 consolidation to give the share some appearance of value after the capital raise.
Consolidation can also be used to create greater value of shares and consequently the appearance of greater margins for issuing shares before an intended a capital raise. The opposite to consolidation (a split) is sometimes applied when a share price gets too high. Strangely some investors are put off by highly priced shares or it becomes not practical to trade at such high prices. Nestle did a 10 for 1 share split in 2008 when the shares had become too expensive.
NUH has a great product but it does need a solid foundation of capital from whatever source to launch it into the future and establish permanency in the market. You need more than just a good product (remember Beta vs VHS). If NUH goes well, expect a market cap eventually closer to $1B.
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