The Boss Energy (ASX: BOE) share price is capturing a lot of attention this morning.
This is due to some investment websites showing the uranium exploration company’s shares up a whopping 500% despite the omicron-induced market selloff on Monday.
Is the Boss Energy share price really up by 500% today?
Unfortunately, things aren’t anywhere near as positive as it might appear for the Boss Energy share price this morning.
At the time of writing, the uranium exploration company’s shares are changing hands for $2.21.
While this is a big lift on the Boss Energy share price of 31 cents at the close of play last week, there is a technical reason for this.
Last week the company held its annual general meeting. At the meeting, the company’s shareholders were invited to vote on the consolidation of its share count from 2,278,276,306 shares to 284,784,538.
This would mean that for every 8 Boss Energy shares they owned, they would be consolidated into a single share.
The overall value of these shares would stay the same, ceteris paribus, and the Boss Energy share price would theoretically increase in value by eight times to reflect this.
In the case of the company’s shares, this would mean a value of $2.48 per share (8 x 31 cents).
At the annual general meeting, shareholders voted overwhelmingly in favour of the share consolidation. A total of 99.41% of the votes cast were in favour of the resolution, leading to today’s events.
Boss Energy’s shares are actually falling
So, with the company’s shares now trading at $2.21, they certainly are not up 500% this morning.
In fact, given that 8 shares would have been valued at $2.48 based on last week’s share price, this unfortunately means they are actually down by almost 11% at the time of writing.