RE:RE:Reverse Split ($ 10.00 US$) Good or Bad?There is no date, here is the full spiel from the Management Information Circular 5.1 ShareConsolidation
As disclosed in the 2017 Management Information Circular, the Corporation is continuing to prepare for a secondary listing of its Common Shares on the NASDAQ Stock Exchange. Consequently, the Corporation has continued to build relationships with financial advisors to provide advice as part of a potential listing on the NASDAQ Stock Exchange. In its preparation, it has received consistent advice from these US based financial advisors and other potential advisors that US institutional investors have practices which preclude them from investing in publicly traded companies which have a share price of less than US$10. Therefore, the proposed Share Consolidation is being contemplated to achieve the aforementioned objective and to comply with the rules of the NASDAQ Stock Exchange, which require a minimum trading price of US$3 or US$4 under specified conditions.
At the Meeting, shareholders will be asked to consider a special resolution (the "Consolidation Resolution"), authorizing the Board to amend the articles of the Corporation to effect a consolidation of all of the issued and outstanding Common Shares, such that the trading price of the post-consolidation Common Shares is at a minimum of US$10 per post-consolidation Common Share calculated based on the 5-day volume weighted average trading price of the Common Shares (or such consolidation ratio that will permit the Corporation to meet its above- mentioned objectives with respect to a potential secondary listing on the NASDAQ Stock Exchange) (the "Share Consolidation"), effective as at the discretion of the Board.
For illustrative purposes, should the 5-day volume weighted average trading price of the Common Shares prior to the consolidation be US$41, in order to attain a share price of US$16 per post-consolidation Common Share, the Share Consolidation would need to be effected at a minimum consolidation ratio of four for one, resulting in the number of Common Shares issued and outstanding to be reduced from 712,329,990 to approximately 178,082,498 Common Shares.
Although shareholder approval for the Share Consolidation is being sought at the Meeting, the Share Consolidation would become effective at a date in the future to be determined by the Corporation if and when it is considered to be in the best interest of the Corporation to implement the Share Consolidation. The Board of Directors may determine not to implement the Share Consolidation at any time after the Meeting without further action on the part of or notice to the shareholders.
There can be no assurance whatsoever that any increase in the market price per Common Share will result from the proposed Share Consolidation and there is no assurance whatsoever that the Common Shares of the Corporation will be listed on the NASDAQ Stock Exchange.
No fractional Common Shares of the Corporation will be issued in connection with the Share Consolidation and, in the event that a shareholder would otherwise be entitled to receive a fractional share upon such Share Consolidation, the number of Common Shares to be received by such shareholder will be rounded down to the nearest whole Common Share.
If the proposed Share Consolidation is approved by the shareholders and all regulatory requirements are complied with, including the approval of the Toronto Stock Exchange (the "TSX"), and implemented by the Board of Directors, following the announcement by the Corporation of the effective date of the Share Consolidation, registered shareholders will be sent a letter of transmittal by the Corporation's transfer agent, Computershare Trust Company of Canada, containing instructions on how to exchange their share certificates representing pre-consolidation Common Shares for new share certificates representing post-consolidation Common Shares. Non-registered shareholders holding their Common Shares through a bank, broker or other nominee should note that such banks, brokers or other nominees may have different procedures for processing the Share Consolidation than those that will be put in place by the Corporation for the registered shareholders. If you hold your Common Shares with such a bank, broker or other nominee and if you have any questions in this regard, you are encouraged to contact your nominee.