Duran Announces Proposed Share Consolidation TORONTO, ONTARIO--(Marketwired - March 17, 2016) - Duran Ventures Inc. (TSX VENTURE:DRV)(LMA:DRV)("Duran" or the "Company") announces that it has mailed the notice of meeting and management information circular (collectively, the "Circular") for its annual and special meeting of shareholders to be held on April 8, 2016 (the "Meeting").
At the Meeting, the shareholders of the Company will be asked to approve, among other things, a share consolidation of the Company's issued and outstanding common shares at a ratio of up to seven (7) pre-consolidation shares to one (1) post-consolidation share (the "Consolidation"). It is not proposed that the Company would change its name in connection with the Consolidation.
The Board of Directors of the Company believes that it is in the best interests of the Company to reduce the number of outstanding Common Shares by way of the Consolidation and thus is recommending that shareholders approve the Consolidation. The Consolidation could increase the Company's flexibility with respect to potential business transactions, including any possible future equity financings.
If the Consolidation is approved, the Board of Directors will have the authority to implement the Consolidation at the ratio of up to 7 to 1 at any time and will be permitted, without further shareholder approval, to select a lower ratio if they deem it to be appropriate. Notwithstanding approval of the Consolidation by the shareholders, Duran's directors, in their sole discretion, may abandon the Consolidation without further approval, action by, or prior notice to shareholders.
Duran currently has 234,649,870 common shares issued and outstanding. Following the completion of the proposed Consolidation, the number of common shares of the Company issued and outstanding will depend on the ratio selected by the Board of Directors. The following table sets out the appropriate number of common shares that would be outstanding as a result of the Consolidation at the ratios suggested below.
| | | |
| Proposed Consolidation Ratio(1) | | Approximate Number of Outstanding Common Shares
(Post Consolidation)(2) |
| 1 for 7 | | 33,521,140 |
| 1 for 6 | | 39,108,312 |
| 1 for 5 | | 46,929,974 |
| 1 for 4 | | 58,662,468 |
| 1 for 3 | | 78,216,623 |
| 1 for 2 | | 117,324,935 |
| Notes: |
| (1) The ratios above are for information purposes only and are not indicative of the actual ratio that may be adopted by the Board of Directors to effect the Consolidation. |
| (2) Based on the number of outstanding common shares as at the date hereof. |
The Circular, which provides further details of the matters referred to herein, has been mailed to shareholders of the Company in accordance with applicable securities laws. A copy of the Circular is available on SEDAR under the Company's profile at www.sedar.com.
The Consolidation is subject to the approval of the shareholders of Duran and the TSX Venture Exchange.
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