VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/03/13 -- EastCoal Inc. ("EastCoal" or the "Company") (TSX VENTURE: ECX) (AIM: ECX) announces that as first detailed in the announcement of 3 June 2013 (4 June 2013 in the United Kingdom), the Company is convening a shareholder vote at the Company's upcoming annual general meeting on 26 July 2013 (the "2013 AGM"), to effect a consolidation of all of the issued and outstanding common shares of the Company (the "Consolidation"), such that for up to every 20 common shares held, each shareholder would receive one common share upon completion of the Consolidation. The Company had intended for this to be on a five to one basis, but the Company will ask shareholders to give the board of directors (the "Board") authorization to fix the final ratio of pre-consolidation to post-consolidation Common Shares to be used in the Consolidation (the "Final Consolidation Ratio"). However, the Final Consolidation Ratio will not exceed 20 to one. The Consolidation will also be subject to TSX Venture Exchange approval and admission of the consolidated shares to trading on AIM. Details of the Final Consolidation Ratio and the expected trading dates for the newly consolidated shares are expected to be announced shortly after the 2013 AGM.
As previously noted, the effect of the Consolidation will be to reduce the total number of shares in issue following the Company's fundraising which closed on 7 June 2013 (the "Fundraising"). The Board believes that the Consolidation may reduce the volatility in the price of the Company's common shares and may ensure that the price of the common shares is more appropriate for a company of EastCoal's size than would otherwise have been the case following the Fundraising.
Full details of the Consolidation have been included in the management information circular (the "Circular") which the Company has filed with the regulatory authorities in Canada and mailed to its shareholders in connection with the 2013 AGM. All shareholders are urged to read the Circular. A copy of the circular is available on EastCoal's SEDAR profile at www.sedar.com and will also be posted to the Company's website at www.eastcoal.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
President and Acting CFO
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Cenkos Securities plc
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Cenkos Securities plc
Derrick Lee / Alan Stewart
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Jos Simson / Emily Fenton / Mike Bartlett
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