What are the expected costs associated with the consolidation and will they be borne by shareholders or the company?

Expected costs of the share‑consolidation

A 1‑for‑10 reverse split is a purely structural transaction. The primary expenses are administrative and regulatory in nature—legal counsel, accounting and advisory fees for the board’s approval process, filing and listing fees with the TSX Venture Exchange, and any incidental costs (printing of new share certificates or a new electronic record). In practice these costs run in the low‑to‑mid‑hundreds of thousands of Canadian dollars for a TSXV‑listed issuer of Water Ways’ size, well below the threshold that would materially affect the balance sheet.

Who pays?

All of these out‑of‑pocket expenses are charged to the company’s expense accounts. Shareholders do not incur a cash out‑lay; the consolidation merely changes the ratio of shares held (10 old shares become 1 new share) without altering the total market value of each shareholder’s stake. Consequently, the cost of the consolidation is borne by the corporation, not by the shareholders.

Trading implications

Because the consolidation does not dilute equity and the company is covering the modest administrative costs, there is no direct cash drag on the balance sheet that would affect valuation metrics (e.g., EV/EBITDA or net‑asset value). The primary market impact will be the typical price “re‑rating” of the stock (≈10‑fold increase in per‑share price) which can attract technical traders who prefer higher‑priced stocks and may reduce the share‑price volatility seen in sub‑$0.50‑range securities. Monitor the post‑consolidation price action for potential breakout or consolidation patterns; a clean, fee‑free reverse split typically provides a short‑term “clean‑up” rally if the stock has been undervalued or oversold, but fundamentals remain unchanged. If you hold WWT, expect no cash hit and focus on the company’s operational outlook rather than the trivial administrative expense.