Ms. Maria Au reports
ALTAI DECLARES SPECIAL CASH DISTRIBUTION TO SHAREHOLDERS
Altai Resources Inc.'s board of directors approved today a special cash distribution by way of a return of capital on the common shares of the company of five cents per common share. At the shareholders meeting held on July 16, 2015, Altai shareholders approved the special resolution authorizing the board to reduce the stated capital of the common shares up to a maximum accumulative total of $4.5-million by way of special cash distribution(s). The approved special resolution allows the board to approve the cash distribution by way of a return of capital, which is expected to be generally more tax advantageous to shareholders than a dividend.
At the meeting, 99.8 per cent of the votes cast were in favour of the special resolution. Details of the special resolution are in the meeting's management information circular dated June 11, 2015, which is available on SEDAR or on Altai's website.
The aggregate amount of the cash distribution will be approximately $2.76-million. It will be financed from Altai's cash reserves.
The cash distribution to shareholders will be made in accordance with the due bill trading procedures mandated by the TSX Venture Exchange for distribution or dividend the amount per share of which exceeds 25 per cent of the share trading price on the declaration date. The purpose is to result in traded shares carrying the value of the five-cent distribution until it is paid.
Key dates for the cash distribution are:
-
The record date to determine shareholders entitled to receive the cash
distribution is May 18, 2016.
- The payment date for the cash distribution is June 9, 2016;
- The due bill trading period is from May 16, 2016, to June 9, 2016, inclusively. In
accordance with the applicable rules of the TSX-V, the due bill trading
procedures of the TSX-V will apply to the cash distribution. The common
shares will trade on a due bill basis from two trading days prior to
the distribution record date to the payment date, inclusively. Any trades that are executed during the due bill period
will be identified to ensure purchasers of the common shares receive the
entitlement to the respective distribution.
- The ex distribution date is June 10, 2016. The common shares will
commence trading on an ex distribution basis on June 10, 2016, as of
which date purchases of the common shares will no longer have an
attaching entitlement to the distribution.
- The due bill redemption date is June 14, 2016 (two trading days after the
ex distribution date).
We seek Safe Harbor.
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