MGX Minerals Inc (CSE:XMG, OTCQB:MGXMF) said it has set 29 June 2018 as the record date for the proposed distribution of the payment of a dividend-in-kind of common shares in the capital of its wholly-owned subsidiary, ZincNyx, to shareholders of MGX.
In a statement, it said that all U.S shareholders will be eligible to receive the proposed distribution but stressed that there is no guarantee that ZincNyx shares will be listed on a qualified U.S. exchange.
The company expects to issue dividend shares totalling 25% to 40% of its holdings in ZincNyx to MGX shareholders of record, pending final audit and pricing of shares.
The proposed distribution is subject to applicable approvals and regulatory compliance in all respects.
MGX announced plans to spin-off ZincNyx by way of a dividend in kind of ZincNyx shares.
The proposed distribution is expected to be made by way of ZincNyx filing a prospectus with securities regulatory authorities in the jurisdictions where MGX is a reporting issuer in order to qualify the proposed distribution of ZincNyx shares to MGX shareholders such that the ZincNyx shares to be delivered under the proposed distribution are not expected to be subject to any statutory hold periods.
The proposed distribution will not take place unless or until a receipt for the final prospectus is obtained from the securities regulators.
MGX said it expects to retain a significant ownership position in ZincNyx.
It told investors that it has yet to make any application to list ZincNyx shares for trading on an exchange.