Flow Capital Corp V.FW

consolidation of the common shares

[pienter]

TORONTO, June 08, 2020 (GLOBE NEWSWIRE) -- Flow Capital Corp. (TSXV: FW) (“Flow Capital” or the "Company") confirms today that it has received all necessary approvals for its previously announced consolidation of the common shares (the "Common Shares") of the Company on a 25,000 to 1 basis (the "Consolidation") and subsequent immediate subdivision of the Common Shares on a 1:12,500 basis (the “Subdivision”).

At the effective time of the Consolidation, the Common Shares will be consolidated at a ratio of 25,000 pre-Consolidation Common Shares for every 1 post-Consolidation Common Share, and thereupon any holder of less than 1 post-Consolidation Common Share will cease to hold Common Shares and will be entitled to be paid cash consideration equal to that number of pre-Consolidation Common Shares held by the holder multiplied by an amount equal to the volume weighted average trading price of the Common Shares for the ten trading days immediately preceding the date of the Consolidation, rounded down to the nearest whole cent. Immediately following the completion of the Consolidation, the post-Consolidation Common Shares will be subdivided on the basis of 12,500 post-Subdivision Common Shares for each 1 pre-Subdivision (post-Consolidation) Common Share.

 

The Common Shares are expected to begin trading on a post-Consolidation/Subdivision basis on the TSX Venture Exchange as of the opening of trading on or about June 9, 2020. The trading symbol for the Common Shares, FW, will not change. A new CUSIP number of 343449203 will be assigned to the Common Shares when the Consolidation and Subdivision become effective.

[pienter]

consolidation of the common shares, is this clear to everyone, not to me, can someone explain if you have 1000 shares, how is the distribution key, with what do you end?

[MS12345]

Essentially from what I gathered, anyone with less than 25,000 shares prior to the consolidation will get paid out the value of old shares. For example if you held 1000 before this consolidation you will get around $120 (or whatever the previous 10 day average before consolidation is/was)...

[pienter]

Thanks MS12345. So, Fw don't like there's small investors, is that the right conclusion ? What if some one have 25001 shares, how plays that out?

[MS12345]

No worries. Essentially, that is the case, to many holding few shares. So, anything over 25 K would be divideded by 25K and whole numbers would be multiplied by 12500 to get the new number of shares. Fractional shares would be treated the same way (I believe) as shares less than 25K. So, in this case someone with say 25001 would have 12500 of the new shares plus 1 share returned at whatever the

[pienter]

@ MS12345. It is the 2nd time in the same number of years (2) that our money has been stolen from us. In 2018 it was 1 new for 12 old, and now again 1 for 2. Bad luck if you are a long-term investor. Reluctantly but it might be better this way, I don't think such a profession deserves my financial support. Unfortunately.

[pienter]

Stolen by bad decisions and therefore a shrinking value.

[MS12345]

Agree with you all around. I got fooled with these guys and bought into it. This time figure, my money, whatever left of it was better used elsewhere. In another year, these clowns will come back with another share consolidation....

[pienter]

Today I was paid out, or should I say bought out, or is it more: disappear you little investor, here is your charity fund.