LithLover wrote: Yes, here is the exact wording from the July 16, 2020 management information circular posted on SEDAR.:
Page 13
D. Consolidation of the Common Shares At the Meeting, the Shareholders will be asked to consider and, if deemed advisable, pass a special resolution (the “Share Consolidation Resolution”) authorizing a consolidation of the Corporation’s common shares on the basis of up to eight (8) pre-consolidation common shares for each one post-consolidation common share (the “Share Consolidation”). Approval of the Share Consolidation Resolution does not necessarily mean that the Board will implement the Consolidation. Even if the Share Consolidation Resolution is approved by shareholders at the Meeting, and accepted by the TSX, the Board will have the discretion not to proceed with the Consolidation. Background to and Reasons for the Share Consolidation The Board believes that it is in the best interests of the Corporation to reduce the number of outstanding common shares by way of the Share Consolidation.
The potential benefits of the Share Consolidation include:
1. Preparation for potential US listing: the Corporation is looking to prepare for a possible future listing on NASDAQ or other senior US stock exchange. The higher anticipated price of the post-consolidation common shares may help make the Corporation eligible for such a listing. 2. Greater investor interest: the current share structure of the Corporation may make it more difficult for the Corporation to attract the additional equity financing required to maintain the Corporation or to further develop its products. A share consolidation may have the effect of raising, on a proportionate basis, the price of the common shares, which could appeal to certain investors that find shares valued above certain prices to be more attractive from an investment perspective.
3. Raise additional capital at a higher price per share: the higher anticipated price of the post-consolidation common shares may allow the Corporation to raise additional capital through the sale of additional common shares at a higher price per common share than would be possible in the absence of the Share Consolidation.
4. A tighter share structure could potentially make the Corporation less attractive to computerized algorithmic trading. This in turn would allow the share price to rise with less downward pressure from day trading.-----------------------------------------------
greenergy wrote: It's discussed in detail on Page 13 from the Management Information Circular released on Sedar on the 16th.