There is no profit difference between aquiring a lot of shares at a very low price and a few shares at an expensive price after consolidation because they both represent same money.
So why consolidate?
Because there is a perception that a very low price is a very risky prospect. Large amount of outstanding shares is also adding to that poor perception. There are also exchange requirements to be met. That results in few takers in financings.
And it looks like KWG is in desperate need of financings over the next few months as Fossil stated.

Consolidation of 300:1 would result in about 3 million shares of $8 per share.
So what are the consequences?
The company would look on paper as betterl managed but the shareholders would be taken to the cleaners, because there would be financings at the new terms, highly disadvantaging the old holders. I suspect these old holders would not see a profit. I say suspect because to see profit one would have had to aquired a boat load of old shares at near to 3 cents a share.

But that is not the end of my story:
As soon as the consolidation is complete and more so after any financing at the new structure the sp would slide and there would be plenty of room for it to do so. There being not much room to maneuver if you are between 3 cents and zero. Yes there are rumours of news but rumours take a back seat to facts, consolidation being a profound fact that trumps all.

So I say consolodation is good for the company and it's management but not for ordinary share holder. For that reason I do not hold any KWG nor would buy any after consolidation until I saw what the action was post consolidation and financing. I suspect Noront would vote their shares as against consolidation.

If I was a holder of KWG shares I would consider consolidation of 10:1, but not higher. Ed.