it's pre-approval of board discretion.. No...it is not a done deal...resolution is to authorize the board to do so at its discretion wrt to timing and UP TO 5:1, with no notice required....so shareholders won't know exactly if and when it's coming at them. Or why...for a new opportunity or not..
if you accept the resolution, you entrust this authority and discretion to the board with no further vote...there doesn't seem to be a timeline attached to enact such powers to decide a rollback ?
...if I understand correctly.
Not good to have a company operating with uncertainty...and the protective advance notice fluff..is the BOD worried?
Maybe for all the talk, there actually isn't a deal (of significance) in the works....or a reason to do the rollback yet.
Info circular on www.sedar.com p.21...
the issued and fully paid common shares without par value of the Company be
consolidated on the basis of a consolidation ratio to be determined by the Board
(the “consolidation ratio”) to a maximum of every 5 outstanding issued and fully
paid common shares without par value before consolidation being consolidated
into 1 issued and fully paid common share without par value and, in the event
that, at the date and time that this resolution is effective, a registered
shareholder is the holder of a number of common shares not evenly divisible by
such consolidation ratio, then the number of post-consolidation common shares
held by such shareholder shall be rounded down to the nearest whole number
and the fractional share shall be eliminated;
(b) the Board in its discretion by resolution may, without requiring further approval,
ratification or confirmation by the shareholders of the Company, effect the
consolidation and determine the consolidation ratio and the date and time upon
which the consolidation shall take effect or, in its discretion, may decline to
implement the consolidation; and