Do you know at the end how many shares we will still have in our portfolio? Potential Share Consolidation
Aeterna’s listing on Nasdaq is a critical asset to Aeterna and its shareholders, as it provides access to a broad universe of potential investors, enhanced access to equity capital and trading liquidity. As such, Ceapro and Aeterna wish to ensure that their combined operations can continue to benefit from the Aeterna listing on Nasdaq after the closing of the Transaction.
To allow Aeterna to comply with Nasdaq’s standards regarding minimum share prices following the closing of the Transaction, Aeterna may be required to complete a consolidation (or reverse-split) of its common shares as part of the Transaction (the “Consolidation”). As a result, at the Aeterna special meeting of shareholders, Aeterna shareholders will be asked to approve a special resolution authorizing the Aeterna Board, at its discretion, to consolidate the Aeterna common shares at a ratio within the range of between three and four pre-Consolidation common shares for every one post-Consolidation common share. The Consolidation ratio may be adjusted by the parties in order to meet Nasdaq’s standards.
The Consolidation may also provide the potential benefits of enhancing the marketability of the common shares given that an increase in the price per common share could increase the interest of institutional and other investors with policies that prohibit them from purchasing shares below a minimum price, and reducing volatility as a result of small changes in the share price of the common shares.