GREY:RNKLF - Post by User
Post by
pierregon May 13, 2020 10:15am
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Post# 31021730
Consolidation Ratio which may be less than 11-to-one
Consolidation Ratio which may be less than 11-to-oneConsolidation Ratio which may be less than 11-to-one.
NOTICE AND MANAGEMENT INFORMATION CIRCULAR
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON JUNE 11, 2020. https://cdn.ceo.ca/1fbnvnc-11.pdf « Share Consolidation
At the Meeting, shareholders will be asked to consider, and if deemed advisable to approve, a special resolution, authorizing, an amendment to the Articles to consolidate its outstanding common shares (the “Share Consolidation”) on such basis as the Board may determine, in its sole discretion, provided that the Share Consolidation shall not be greater than on a 11-to-one basis (the "Consolidation Ratio"). The Board may in its sole discretion determine to use a Consolidation Ratio which may be less than 11-to-one, and subject always to the Corporation continuing to meet the distribution requirements of the TSX. Subject to the approval of the TSX, approval of the special resolution by shareholders of the Corporation would give the Board authority to implement the Consolidation at any time prior to the next annual meeting of shareholders of the Corporation. Notwithstanding approval of the proposed Share Consolidation by shareholders, the Board, in its sole discretion, may revoke the special resolution and abandon the Share Consolidation without further approval or action by or prior notice to the shareholders.
Background and Reasons for the Share Consolidation
Potential for Increased and More Attractive Share Price
The Corporation believes that it is desirable for its common shares to trade at a higher price per common share. An increase in trading price of the common shares could heighten the interest of the financial community in the Corporation and potentially broaden the pool of investors who may consider investing or may be able to invest in the Corporation, potentially increasing the trading volume and liquidity of its common shares. The Share Consolidation may also help to attract institutional investors or fund managers who have internal policies that either prohibit them from purchasing stocks below a certain minimum price or tend to discourage individual brokers from recommending such shares to their customers, including institutional investors, indexes, investment funds and exchange-traded funds that are prohibited from purchasing shares below a certain minimum price threshold.
Reduced Shareholder Transaction Costs
Certain investors pay commissions on a per share basis on a purchase or sale of common shares. The Share Consolidation would raise the price per common share. As a result, certain investors may pay lower trading commissions when trading a fixed dollar amount (for a lower number of common shares).
Improved Trading Liquidity
The combination of potentially lower transaction costs and increased interest from institutional investors and investment funds could ultimately improve the trading liquidity of the Corporation's common shares.
Evolution into a new Producer Peer Group
The Corporation has quickly evolved into a steady-state gold producer in a short time period. An analysis of the peer group to whom the Corporation is now compared indicates that a restructuring of the common shares is appropriate. »