Stockhouse Consolidation Discussion lacks context. The resolution provides the board with "Options" to consolidate up to 20:1.
It may or may not happen at all.
From my perspective, as much as I have reservations vis a vis reverse splits/share consolidation, the real current management focus must be to ensure the target markets understand and "Buy Into" Arht technology.
Simply:
demonstrate for Investors that the product has "Legs" and meaningful sales levels can be achieved and the issue of consolidation will become moot.
Approval of Consolidation Resolution
At the Meeting, shareholders will be asked to consider, and if deemed advisable, pass a special resolution
(the "Consolidation Resolution") approving the consolidation (the "Consolidation") of the Common Shares
to consolidate the Common Shares on the basis of one post-Consolidation Common Share (each a
“Consolidated Share”) for every 20 pre-Consolidation Common Shares (“Existing Shares”) outstanding as
of the date of the Consolidation (the “Consolidation Ratio”).
The Consolidation Resolution authorizes the Consolidation and allows the Board to alter the Consolidation Ratio, provided that the Consolidation Ratio shall not be greater than 20 Existing Common Shares for one Consolidated Common Share.
No fractional
Consolidated Shares will be issued under the Consolidation. If the Consolidation would otherwise result in a
shareholder holding a fractional Consolidated Share, the number of Consolidated Shares to be issued to
such shareholder shall be rounded up to the next higher whole number if the fraction is 0.5 or greater, and
rounded down to the next lower whole number if the fraction is less than 0.5.
Pursuant to TSXV Policy 5.8 - Issuer Names, Issuer Name Changes, Share Consolidations and Splits, the
Corporation must apply to the TSXV for its approval to effect the Consolidation. The Corporation may also be
required to obtain a new CUSIP or ISIN number.
If the Consolidation Resolution is approved, the Board will determine if and when the Consolidation would be
effected, and shall determine the Consolidation Ratio.
No further action on the part of shareholders would be required in order for the Board to implement the Consolidation.
Notwithstanding approval of the proposed Consolidation by the shareholders of the Corporation, the Board, in its sole discretion, may delay implementation of the Consolidation or revoke the Consolidation Resolution and abandon the Consolidation without further approval or action by or prior notice to the shareholders.
If the Board does not implement the Consolidation prior to the next annual meeting of shareholders, the
authority granted by the special resolution to implement the Consolidation on these terms shall lapse and be
of no further force or effect.
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