Mr. Hugh Macdonald reports
CORNERSTONE ANNOUNCES EFFECTIVE DATE FOR SHARE CONSOLIDATION
Cornerstone Capital Resources Inc. will implement the previously announced proposed consolidation of its issued and outstanding common shares on the basis of one postconsolidation common share for every 20 preconsolidation common shares, effective as of July 12, 2019. Shareholder approval of the share consolidation was obtained at the company's annual general and special meeting held on June 25, 2019. The company has also received TSX Venture Exchange approval for the share consolidation.
Following the share consolidation, the common shares will continue to be traded on the TSX Venture Exchange under the symbol CGP. The common shares are scheduled to begin trading on a postconsolidation basis at market open on July 15, 2019. Following the share consolidation, the common shares will have a new Cusip number (No. 21922J604) and ISIN (No. CA21922J6043).
A letter of transmittal will be mailed to all registered shareholders with instructions on how to exchange their existing share certificates for new share certificates. Additional copies of the letter of transmittal can be obtained through Computershare Investor Services Inc. Shareholders may also obtain a copy of the letter of transmittal under the company's SEDAR profile. Following the share consolidation, share certificates representing preconsolidation common shares will be deemed for all purposes to represent the number of common shares to which the shareholder is entitled as a result of the share consolidation. No delivery of a new share certificate to a shareholder will be made until the shareholder surrenders the certificates representing the preconsolidation common shares along with the letter of transmittal to Computershare Investor Services in the manner detailed in the letter of transmittal.
Non-registered beneficial holders holding their common shares through a bank, broker or other nominee should note that such banks, brokers or other nominees may have specific procedures for processing the share consolidation. Shareholders holding their common shares with such a bank, broker or nominee and who have any questions in this regard are encouraged to contact their nominees.
No fractional common shares will be issued upon the share consolidation. In the event a holder of common shares would otherwise be entitled to receive a fractional common share in connection with the share consolidation, the number of common shares to be received by such shareholder will be rounded down to the next whole number if that fractional common share is less than one-half of a common share and will be rounded up to the next whole number of common shares if that fractional common share is equal to or greater than one-half of a common share.
There are 640,141,422 Common Shares currently issued and outstanding. Following completion of the share consolidation, the company will have approximately 32,007,071 common shares issued and outstanding (on a non-diluted basis and subject to rounding to account for fractional shares).
The exercise or conversion price of, and the number of common shares issuable under, any convertible securities of the company will be proportionately adjusted upon the completion of the share consolidation.
Further details regarding the share consolidation are included in the company's management information circular dated May 21, 2019, a copy of which is available under the company's SEDAR profile.
About Cornerstone Capital Resources Inc.
Cornerstone is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including in the Cascabel gold-enriched copper porphyry joint venture in northwest Ecuador.
We seek Safe Harbor.
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