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Bullboard - Stock Discussion Forum Global Railway Industries Ltd T.GBI

TSX:GBI - Post Discussion

Global Railway Industries Ltd > 4 for 1 Consolidation and Name Change to Chinook Tyee Industry Ltd?...
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Post by 2guys on Jul 16, 2013 7:13am

4 for 1 Consolidation and Name Change to Chinook Tyee Industry Ltd?...

Well that leaves one scratching their head doesn't it? lol

They say they can consolidate at any time, so hopefully they don't do it at these prices, but with only 13.5 million shares out, why the need to consolidate down to 3.5 million? 

What's with the name Chinook?  Are they looking at wind power, or salmon fishing, lol?

 

Global Railway proposes consolidation, name change

2013-07-15 20:08 ET - News Release

 

Mr. Tom Kusumoto reports

GLOBAL RAILWAY INDUSTRIES LTD. ANNOUNCES PROPOSED SHARE CONSOLIDATION AND NAME CHANGE

Global Railway Industries Ltd. shareholders will be asked to approve a consolidation of the company's issued and outstanding Class A voting common shares at a ratio of up to four preconsolidation shares to one postconsolidation share at the annual general and special meeting of shareholders to be held on Aug. 8, 2013. Additionally, the company proposes to change its name to Chinook Tyee Industry Ltd.

The company currently has an aggregate of 13,890,965 common shares issued and outstanding. If the consolidation were undertaken at the ratio of 4-to-1, the issued and outstanding common shares would be approximately 3,472,741.

The board of directors believes that it is in the best interests of the company to reduce the number of outstanding common shares by way of the consolidation. The board believes that the current issued capital structure is too large for the growth strategy of the company.

If the consolidation is approved, the board of directors will have the authority to implement the consolidation at the ratio of up to 4-to-1 at any time. Notwithstanding approval of the consolidation by the shareholders, the board of directors, in its sole discretion, may abandon the consolidation without further approval from, action by or prior notice to shareholders.

The proposed consolidation is subject to the approval of the shareholders of the company, and both the proposed consolidation and the name change are subject to the approval of the TSX Venture Exchange.






Comment by TheRock07 on Jul 16, 2013 7:25am
This is an unusual ( given the share count ) move but a good one. Consolidations in which there are hard liquid assets usually result in a share price that will rise above hard value. Otherwise, with no hard asset underpining, it is bad for shareholders. Note also that NOR is also undergoing a 1 for 4 as well. My interpretation is that they are planning a major equity exchange/ raise that ...more  
Comment by 2guys on Jul 16, 2013 7:35am
That is or at least would be an interesting move TheRock.  I inadvertantly posted 4 for 1 when it should have read 1 for 4. Looking at NOR's buy in at $0.225 I can't see them doing a 1 for 4 consolidation below their investment and with an added hard asset, I can't see the price being below cash either whent they choose to announce the consolidation either. It won't happen ...more  
Comment by TheRock07 on Jul 16, 2013 2:43pm
If Chinook is its QT via an RTO to take it public bwo an IPO, it is a superb choice.   "Chinook manufactures, sells and services component parts for industrial and marine engines and compressors. Our expertise and product lines cover all engine and compressor needs - from manufacture and supply to component overhaul, re-manufacturing and service. We sell material and equipment relating ...more  
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