Macarthur Minerals Calls an Extraordinary Meeting.... | Source: Macarthur Minerals Limited
VANCOUVER, British Columbia, Oct. 02, 2019 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (TSX-V: MMS) (OTCQB: MMSDF) (the “Company” or “Macarthur”) announces an Extraordinary General Meeting (“Meeting”) of shareholders to be held on October 31, 2019 to support its planned Australian Securities Exchange (“ASX”) dual listing (“Meeting”).
Overview
The Company’s recently announced intention to dual list on ASX will necessitate a consolidation of its share capital in order to meet ASX listing requirements and to ensure appropriate liquidity for an efficient market.
Subject to shareholder and TSX Venture Exchange (“TSX-V”) approval, the Company proposes to consolidate its share capital (the “Share Consolidation”) on the basis of one (1) post-consolidation common share for up to four (4) pre-consolidation common shares (the “Consolidation Ratio”).
The Company currently has 322,033,625 common shares outstanding and subject to approval of the Share Consolidation, completion would result in approximately 80,508,406 post-consolidation common shares outstanding. The number of common shares issuable under, any warrants, options, restricted share units and convertible notes of the Company will also be adjusted in accordance with the Consolidation Ratio.
Key Benefits to Shareholders
The Board considers that the proposed Share Consolidation is in the best interests of the Company and all shareholders in order to advance its projects, including its flagship Lake Giles Iron Project. In particular:
- The Consolidation Ratio will not affect any shareholder’s percentage ownership interest in the Company, except to the extent that the Share Consolidation would otherwise result in any shareholder owning a fractional common share. No fractional common shares will be issued upon the Share Consolidation. In the event that a holder of common shares would otherwise be entitled to receive a fractional common share in connection with the Share Consolidation, the number of common shares to be received by such shareholder will be rounded to the nearest whole number.
- The Company’s planned ASX dual listing (which will be conditional upon the Share Consolidation being approved), is expected to result in a widening of the Company’s Australian retail and institutional investor base and increased investor interest.
- The post consolidation position of the Company is expected to improve trading liquidity and reduce-price volatility.
The Company will also be applying to the TSX-V for approval to extend the expiry date of common share purchase warrants that were issued as part of a non-brokered private placement and a separate rights offering previously completed by the Company and which are due to expire on November 15, 2019 and December 15, 2019 respectively.
The Company’s name and TSX-V trading symbol will remain unchanged.
Approvals and Implementation Process
If the approvals required for the Share Consolidation are obtained and the Board decides to implement the Share Consolidation, the Share Consolidation will occur simultaneously for all common shares at a time determined by the Board and announced by a press release of the Company. Registered shareholders will then receive a letter of transmittal from the Company’s transfer agent with instructions for exchanging their pre-consolidation common share certificates for post-consolidation common share certificates. Non-registered beneficial holders holding their common shares through a bank, broker or other nominee should note that such banks, brokers or other nominees may have specific procedures for processing the Share Consolidation. Shareholders holding their common shares with such a bank, broker or nominee and who have any questions in this regard are encouraged to contact their nominee.
Further Details
Full details regarding the proposed Share Consolidation are included in the Company’s management information circular for the Meeting, which is available under the Company’s profile on SEDAR at www.sedar.com.
ABOUT MACARTHUR MINERALS LIMITED (TSX-V: MMS, OTCQB: MMSDF)