Atikwa Resources Inc. Announces Proposed Share Consolidation
CALGARY, ALBERTA -- (Marketwired) -- 05/22/13 -- Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) today announced the proposed consolidation of its issued and outstanding common shares (the "Shares") on a basis of up to a maximum of thirty (30) pre-consolidation Shares for every one (1) post-consolidation Share (the "Consolidation"). The proposed Consolidation is subject to the approval of the Company's shareholders and the TSX Venture Exchange. Shareholders of Atikwa will be asked to approve the Consolidation at a special meeting of the Company to be held on Friday, June 14, 2013 (the "Meeting"). Additional information regarding the proposed Consolidation is available in the Company's management information circular which will be mailed to Atikwa shareholders in connection with the Meeting and made available on SEDAR under the Company's profile at www.sedar.com.
Management has been pursuing a range of strategic alternatives for the Company over the last six months and continues active negotiations with a number of interested parties. The consistent theme during negotiations in the strategic alternatives process has been that it's necessary for the Company to undergo a consolidation of share capital prior to any recapitalization. Management believes the Consolidation will provide the Company with a share capital structure that will better position Atikwa for a definitive transaction, while the Consolidation range will allow for flexibility in negotiating potential transaction terms as well as attracting new equity financing.
Atikwa currently has 286,784,582 Shares issued and outstanding. If the Consolidation is implemented at the maximum thirty-to-one (30:1) ratio, the Company will have approximately 9,559,486 post-Consolidation Shares issued and outstanding, subject to the treatment of any fractional post-Consolidation Shares. The precise Consolidation ratio will be determined by the Board, following Shareholder approval, in accordance with regulatory requirements for listing. The Company will not be changing its name or trading symbol as part of the Consolidation, however it may pursue a name change in the future in connection with the strategic alternatives process, subject to shareholder and regulatory approval.
Note Regarding Forward Looking Statements
This press release contains forward-looking statements relating to the future operations of the Company. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "believes", "expects" and similar expressions.
The forward-looking statements are based on certain key expectations and assumptions made by Atikwa, including expectations and assumptions concerning timing of receipt of required shareholder and regulatory approvals.
Although Atikwa believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Atikwa can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks that required shareholder and regulatory approvals and risks that other conditions to the completion of the proposed Consolidation are not satisfied.
The forward-looking statements contained in this press release are made as of the date hereof and Atikwa undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
