On 9 October 2026, Alcidion Group Limited (ASX:ALC) announced a Proposed Consolidation of Capital. The company intends to consolidate its issued Capital on a 1 to 10 basis, subject to Shareholder approval at its Annual General Meeting to be held on 12 November 2026.

What the consolidation would change

Alcidion currently has approximately 1.35 billion ordinary shares and approximately 26.7 million performance rights on issue. Following the consolidation, it expects to have approximately 135 million ordinary shares and approximately 2.7 million performance rights.

In line with ASX Listing Rules 7.21 and 7.22, all performance rights will be consolidated in the same ratio. Any fractional entitlement to a share or performance right will be rounded up to the nearest whole number.

The reasons given

The company said the consolidation is intended to simplify its Capital Structure by reducing the number of shares on issue to a level the Board considers more proportionate to the company’s scale and more readily comparable with listed peers.

The Board also said the consolidation may improve price granularity. At the current share price, the minimum ASX price increment represents a relatively large percentage movement in the price of a share, and after consolidation the equivalent increment is expected to be a smaller percentage, which may assist more orderly price discovery.

No change in underlying value

Alcidion stated that the consolidation is a mechanical adjustment. It does not, of itself, change market capitalisation, underlying value, assets, liabilities, cash position, strategy or operations, nor a holder’s proportional ownership, apart from fractional entitlements. It does not raise capital or dilute shareholders.

As an example, a holding of 100,000 shares at an assumed A$0.10 would become 10,000 shares at approximately A$1.00, with the same A$10,000 total value before market movements. The company added that the post-consolidation price will be determined by trading and may rise or fall.

Indicative timetable

The Notice of Meeting and Appendix 3A.3 were due on 9 October 2026. If approved at the AGM on 12 November 2026, the last day of pre-consolidation trading is 13 November, trading on a deferred settlement basis starts on 16 November, the Record Date is 17 November, registration on a post-consolidation basis occurs on 18 November, and normal trading in reorganised securities begins on 25 November 2026. The timetable may change at the Board’s discretion or as required by ASX.

Sector backdrop

Share consolidations are a common corporate action for ASX-listed companies with large numbers of shares on issue and low share prices. They change the number of securities and the price per security but are designed to leave the total value of a holding unchanged at the moment of the change.

Minimum price increments on the ASX are set by price bands, so a low-priced share can see each tick represent a large percentage move. Consolidations are sometimes used to move a price into a band with finer percentage steps.

Risks shareholders should weigh

The consolidation requires shareholder approval at the AGM, and the timetable depends on that outcome. If it is not approved, the existing structure remains.

The company says the consolidation does not forecast the market price, Liquidity or Volatility of its shares. After consolidation, the share price may rise or fall, and fewer shares on issue could affect trading liquidity.

Fractional entitlements are rounded up, which can marginally affect holders with small parcels. A consolidation does not change the company’s operating or financial position, so any change in share performance will depend on other factors.

What’s next

The next step is the AGM on 12 November 2026, where shareholders will vote on the consolidation. If approved, the timetable runs through to normal trading of reorganised securities on 25 November 2026. Shareholders may wish to read the Notice of Annual General Meeting released on 9 October 2026.