GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) said it is considering to consolidate the outstanding common shares of the company on a three to one basis, the firm said Wednesday.
The firm said the consolidation would be on the basis of three pre-consolidation shares for one post-consolidation share. In a statement, the company said management and the board of directors believe the consolidation is necessary to facilitate new equity investment in the company to finance continuing business activities and assist in its overall marketing efforts.
"The consolidation will not change a shareholder's proportionate ownership in the company or the rights of holders of shares," noted the firm in a statement. "Each share outstanding after the consolidation will be entitled to one vote and will be fully paid and non-assessable," adding there will be no name change in conjunction with the consolidation.
The firm said under the terms of the proposed consolidation, no fractional shares will be issued and any fractional shares created as a result of the consolidation will be rounded up or down to the nearest whole number.
The firm noted there are currently 50,848,081 shares issued and outstanding and following the change, there will be about 16,949,360 shares issued and outstanding.
The consolidation is subject to approval by the TSX Venture Exchange.
Shares of GGX were at C$0.08 on Wednesday.
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