ENP Newswire -
Release date- 20062014 -
The share consolidation, or share rollback, would be in a ratio of up to twelve old shares to one new share.
The number of post-consolidation shares issued and outstanding would be dependent on the specific ratio that the common shares would be consolidated.
Accordingly, following the Consolidation, and assuming a full twelve to one consolidation, a total of 4,564,212 Common Shares in the capital of the Company would be issued and outstanding in the capital of the Company. If a lesser consolidation ratio is chosen then the number of post-consolidation common shares would be higher.
The Company has not determined if a name change is advisable at this time. The rational for a consolidation of its issued and outstanding common shares follows a review of the junior resource capital markets, and an assessment of the Company's growth and strategic objectives, and would provide significant benefits to the company and its shareholders.
Following a consolidation, any share payments as consideration for potential acquisitions would be enhanced, and a reduced total outstanding share count would assist the Company to remain competitive with other competing resource issuers.
A consolidation would not reduce the inherent value of the Company, and it may positively help the Company to achieve objectives.
A shareholder would still own the same percentage of the Company as prior to a share consolidation.
Completion of a consolidation is subject to shareholder approval, and possibly TSX-V approval if the consolidation ratio in any 24 month period exceeds a ten to one (10 to 1) ratio. Fractional post-consolidation common shares would not be issued, fractional shares resulting from a consolidation would be rounded up or down to the nearest whole number and no cash consideration will be paid in respect of fractional shares.
Steve Schurman CPG
Tel: 403 775 9089
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