TSXV:CLAS.H - Post by User
Comment by
PTBaileyon Jul 21, 2021 5:10pm
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Post# 33583103
RE:It is posted you have to read it
RE:It is posted you have to read itwhisky11 wrote: This part of bankers asking for Rs is from interview with CEO.
the reason for the Reverse Split ....
Tue 2021-04-27 4:41 PM
The investment bank we are working with has advised that we seek shareholder approval for a share consolidation or reverse split, so that the share price for the financing will be at least $0.50, which will be more attractive to institutional investors.
Without the reverse split, there is a risk that we would be precluded from raising any capital at all, due to the TSXV "five-cent rule", which prohibits listed companies from issuing shares at less than $0.05.
To avoid the risk posed by the "five-cent rule" and to attract institutional investors for our offering, we recommend that shareholders approve the reverse split.
We have considered the risks inherent in a reverse split, and we recognize that shareholders are concerned regarding a reverse split.
We also recognize the risk of short selling following a reverse split. However, after mid-June we expect to announce a number of positive developments that should drive value, attract investor interest and deter short selling."
All things considered, we believe that approval of the reverse split will be in the best interests of the Company and its shareholders.