Share structure The Company has approximately 257 registered shareholders who hold fewer than 500 common shares, representing approximately 0.007% of its issued and outstanding common shares and representing an aggregate market value of approximately $4,000. The Company spends a significant amount of money each year printing and mailing materials to these small shareholders, and servicing their accounts through the Company's registrar and transfer agent. Many of these shareholders had invested in a predecessor company to Avalon over 30 years ago, and the Company believes that most of them will welcome the opportunity to realize the value of their common shares without being required to pay a brokerage or lost certificate fee, which makes disposing of their shares cost prohibitive. If approved by shareholders at the Meeting, the share capital amendment will be accomplished by amending the Company's articles to reflect a 500:1 consolidation of the Company's common shares, immediately followed by a 1:500 split of the Company's post-consolidated common shares.Shareholders holding 500 or more common shares prior to the share capital amendment will continue to hold the same number of common shares after the share capital amendment.Registered shareholders holding less than 500 common shares will be paid cash for their shares. Non-registered shareholders holding less than 500 common shares will have the option to be paid cash for their shares, otherwise they will continue to hold the same number of common shares after the share capital amendment