Ms. Charlotte May reports
CGX ENERGY PROPOSES SHARE CONSOLIDATION
CGX Energy Inc. has proposed the consolidation of its issued and
outstanding common shares on a basis of 10 preconsolidated shares for
each postconsolidation share, subject to shareholder approval and TSX
Venture Exchange approval. The proposed consolidation is to be put
before shareholders at the company's Annual and Special Meeting of
shareholders to be held on June 26, 2013. The name of the company will
not be changed in conjunction with the consolidation.
The consolidation is being proposed to reduce volatility in the stock
and to make it more accessible for institutional investors.
Should the consolidation be approved, the company will also consolidate
its issued and outstanding warrants and options on a 1-for-10 basis,
with the result that each consolidated warrant and option would entitle
the holder to acquire one common share in the capital of the company at
an exercise price equal to 10 times its original exercise price. The accompanying table summarizes the company's current capital structure
and estimated capital structure following the proposed consolidation.
Security Current Following proposed 10:1 consolidation
Common shares 782,037,218 78,203,721
Warrants 42,857,142 warrants at an exercise price of $0.60 4,285,714 warrants at an exercise price of $6.00
370,089,000 warrants at an exercise price of $0.17 37,008,900 warrants at exercise price of $1.70
Options 4,359,730 options with exercise prices ranging 435,973 options with exercise prices
between $0.30 and $1.80 ranging between $3.00 and $18.00
Full details regarding the proposed consolidation will be included in
the management information circular provided in connection with the
annual and special meeting of shareholders.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.