CGX Energy Inc. announced their proposed consolidation of its issued and outstanding common shares on a basis of 10 pre-consolidated shares for each post-consolidation 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 ten-for-one 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 ten times its original exercise price. The following chart summarizes the Company's current capital structure and estimated capital structure following the proposed consolidation:
|
Security |
Current |
Following Proposed |
|
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 |
435,973 options with exercise prices |
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.
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