The group said the intended consolidation will reduce the issued and outstanding shares of the company from 69,781,341 to 17,445,335 shares, assuming no other change in the issued capital. The company's outstanding options and warrants will also be adjusted on the same basis - one new for four old - as the common shares, with proportionate adjustments being made to exercise prices.
Explaining the moves, the company added: “The board of directors believes that the proposed share consolidation and change of name are necessary to facilitate new equity investments in the company, to finance continuing business activities and to investigate new opportunities.”
The effective date of the consolidation, name change and new trading symbol will be disclosed in a subsequent news release, although the board of directors may, at its discretion, determine not to effect the consolidation or change of name.
The company's articles of incorporation authorize the board to approve certain changes to the company's capital structure, including the consolidation and change of name and, as such, shareholder approval is not required. The consolidation and change of name are subject to the approval by the TSX Venture Exchange
The company also announced that it will not be proceeding with the stock option grants as announced July 24, 2020.
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