Worst timing ever IMO... just my TA opinion... everything (technicaly speaking) were coming together ...
Scientific Metals receives civil claim notice
2017-01-16 18:01 ET - News Release
Mr. Brian Kirwin reports
SCIENTIFIC METALS ANNOUNCES DETAILS OF PROPOSED SHARE CONSOLIDATION AND PRIVATE PLACEMENT
Scientific Metals Corp. is releasing the details of a proposed consolidation of its common shares. On Jan. 10, 2017, in accordance with the constating documents of the company, the board of directors of the company passed a resolution authorizing the consolidation of the issued and outstanding common shares of the company on a 1:4 ratio.
The company currently has 121,616,249 common shares issued and outstanding. Following the completion of the consolidation and not taking into account any adjustments for rounding, the company anticipates there will be approximately 30,404,062 common shares outstanding.
No fractional shares will be issued as a result of the consolidation. Shareholders who would otherwise be entitled to receive a fraction of a common share will be rounded down to the nearest whole number of common shares and no cash consideration will be paid in respect of fractional shares.
The exercise price, and number of common shares of the company issuable upon the exercise of outstanding stock options, warrants or other convertible securities, will be proportionately adjusted to reflect the consolidation.
The company does not intend to change its name or seek a new stock trading symbol from the TSX Venture Exchange in connection with the consolidation. The consolidation remains subject to acceptance by the TSX Venture Exchange.
Following receipt of acceptance by the TSX-V, the company will complete the necessary filings in order to give effect to the consolidation. Once completed, a letter of transmittal will be sent by mail to shareholders advising them that the consolidation has taken effect and instructing them to surrender the certificates evidencing their common shares for replacement certificates representing the number of common shares to which they are entitled as a result of the consolidation. Until surrendered, each certificate formerly representing common shares will be deemed for all purposes to represent the number of common shares to which the holder thereof is entitled as a result of the consolidation.
The board of directors of the company is of the view that the consolidation will provide the company with greater flexibility for future corporate activities, enhance the marketability of the common shares as an investment and lead to increased interest by a wider audience of potential investors, thereby increasing its ability to raise additional financing to finance operations in the near future.
In addition to the consolidation, subject to the approval of the TSX-V, the company proposes to complete a non-brokered private placement of units at a postconsolidation price of 20 cents per unit for gross proceeds of up to $2-million. Each unit shall comprise one common share in the capital of the company and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at a postconsolidation price of 40 cents per share at any time within 18 months of the date of issuance. All of the securities to be issued under the private placement will be subject to a four-month resale restriction. In connection with this transaction, a cash finder's fee shall be payable to an eligible arm's-length party in accordance with the policies of the TSX Venture Exchange.
The company intends to use the net proceeds of this private placement for the phase 1 exploration program at its flagship Iron Creek cobalt property in Idaho, to advance its lithium and cobalt properties, and for general working capital purposes.
The company also reports that the vendor of the company's Suriname property has issued a notice of civil claim naming the company, alleging certain unpaid amounts pursuant to its consulting agreement. The company has retained counsel and will vigorously defend such claim, management being of the view that it is without merit.