Kermode to roll back shares 1:10 Oct. 6 Kermode to roll back shares 1:10 Oct. 6
Kermode Resources Ltd (C:KLM)
Shares Issued 240,129,491
Last Close 9/29/2023 $0.005
Tuesday October 3 2023 - News Release
Mr. Peter Bell reports
KERMODE ANNOUNCES EFFECTIVE DATE FOR 10:1 SHARE CONSOLIDATION
The effective date is on or about Oct. 6, 2023, for the consolidation of Kermode Resources Ltd.'s shares on the basis of one postconsolidation common share for every 10 preconsolidation common shares, as previously announced Sept. 25, 2023.
Currently, there are 240,129,491 common shares issued and outstanding. After the consolidation, there will be 24,012,949 common shares issued and outstanding. No fractional shares will be issued as a result of the consolidation. Instead, any fractional share interest of 0.5 or higher arising from the consolidation will be rounded up to one whole share, and any fractional share interest of less than 0.5 will be cancelled.
The company's new ISIN and CUSIP will be CA4919022018 and 491902201, respectively. The company will not be seeking a new name or trading symbol. In accordance with the articles of the company, the consolidation may be approved by the board of directors of the company and shareholder approval is not required. The terms of all stock options, warrants and property purchase option payments have been adjusted in accordance with the consolidation.
The board has determined that the consolidation would be in the best interests of the shareholders to improve trading in the company's shares on the secondary market. When Kermode had over 200 million shares issued, the fact that the minimum pricing increment on the TSX Venture Exchange is a half-penny (0.5 cent) meant that the implied delta on Kermode's market capitalization was greater than $1-million per tick and the minimum market capitalization for Kermode was also greater than $1-million. After the consolidation, the implied delta on Kermode's market capitalization will be approximately $100,000 per tick, which allows the secondary market to have more granularity in pricing Kermode's market capitalization. Furthermore, the board believes that the improvements in the secondary market may impact the primary market for Kermode's shares by allowing greater flexibility in the pricing of future financings.
Registered shareholders of the company will receive a letter of transmittal from the company's transfer agent with instructions for exchanging their preconsolidation shares. Shareholders who hold their shares through a broker or other intermediary will not need to complete a letter of transmittal.
About Kermode Resources Ltd.
Kermode is a junior mining company hunting for exploration opportunities around the world.
We seek Safe Harbor.
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