Will the consolidation affect the company's index eligibility and liquidity on major exchanges?

Impact on Index Eligibility

A 5‑for‑1 reverse split will lift the nominal share price roughly five‑fold while cutting the share count by 80 %. Index providers (e.g., S&P/TSX, MSCI) base eligibility on several criteria—minimum price, free‑float, market‑cap and liquidity. By lifting the per‑share price, Apollo eliminates the risk of falling below any minimum‑price threshold that could jeopardise its current inclusion (many US‑based indices set a floor around US $1). However, the reduced share count also compresses the free‑float denominator, which may modestly lower the company’s calculated market‑capitalisation for index‑weighting purposes. In practice, the change is usually viewed as a neutral to slightly positive adjustment for index eligibility; most major indices will retain Apollo provided the post‑split price stays comfortably above the floor and trading volume remains sufficient.

Liquidity on the TSX, OTCQB and Frankfurt

Liquidity is the primary concern with a reverse split. The number of tradable shares shrinks, and daily volume will initially decline as institutional and retail participants adjust to the new pricing structure. Bid‑ask spreads can widen temporarily, and the share‑count contraction may lead to a modest increase in the stock’s price impact per trade. Nonetheless, Apollo’s existing listings on three liquid venues (TSX.V, OTCQB, Frankfurt) give it a broader market‑maker base, which should cushion the liquidity dip. Market participants often see a short‑term down‑side pressure as smaller‑cap traders exit, followed by a stabilisation once the new share class settles and the company’s fundamentals (e.g., silver‑production outlook) drive demand.

Actionable Take‑aways

1. Expect a price adjustment – the market will rebalance the share price roughly 5× higher, but expect a modest 2–4 % “reverse‑split drift” as liquidity normalises.
   
2. Monitor index re‑balancing – any index‑provider re‑weighting will likely occur during the next quarterly rebalance; be prepared for a brief uptick in institutional buying if Apollo’s post‑split price qualifies for a higher‑weight slot.
   
3. Trade with wider spreads – in the first 1‑2 weeks after the consolidation, use a slightly larger slippage buffer or limit‑order tactics to avoid being filled at unfavorable prices.
   

Overall, the consolidation should not impair Apollo’s eligibility on the major exchanges and, while short‑term liquidity may thin out, the broader multi‑exchange presence and underlying fundamentals keep the stock fundamentally sound for medium‑term positioning.