Under Stephen Clayson's watch16 Jul 2021 13:30
LONDON: 4 November 2016 - The directors of ECR Minerals Plc (the “Board”) announce that it has posted to shareholders a circular and notice of General Meeting (“Notice”) in relation to a proposed capital reorganisation. The effect of the capital reorganisation, which comprises a consolidation and sub-division of shares ("Capital Reorganisation"), would be to reduce the number of the Company’s ordinary shares in issue to a level more in line with other comparable AIM-traded companies. Copies of the circular and Notice will be available shortly on the Company’s website www.ecrminerals.com.
The proposed Capital Reorganisation will consist of two elements:
every 200 existing ordinary shares of 0.001 pence each ("Existing Ordinary Shares") will be consolidated into one consolidated share of 0.2 pence ("Consolidated Share") ("Consolidation"); and
immediately following the Consolidation, each Consolidated Share will then be sub-divided into one new ordinary share of 0.001 pence ("New Ordinary Share") and one new deferred share of 0.199 pence ("New Deferred Share") ("Sub-Division").
The Company's issued ordinary share capital currently consists of approximately 25.8 billion Existing Ordinary Shares. This number of shares in issue is considerably higher than the majority of companies on AIM, and the Board believes that this, combined with the current share price of significantly less than 0.01 pence per Existing Ordinary Share (as at 3 November 2016), affects investor perception of the Company and its share price volatility.
Accordingly, the primary objective of the Capital Reorganisation is to reduce the number of existing ordinary shares to a level which is more in line with other comparable AIM-traded companies with the intention of also creating a higher share price per ordinary share in the capital of the Company. The Directors believe that the Capital Reorganisation should improve the liquidity and marketability of the Company’s ordinary shares. The purpose of the Sub-Division is to retain the nominal value of 0.001 pence each per New Ordinary Share, which is the current nominal value of each of the Existing Ordinary Shares.
As all of the Existing Ordinary Shares are proposed to be consolidated, the proportion of issued ordinary shareholdings in the Company held by each Shareholder immediately before and immediately after the Consolidation will, save for fractional entitlements, remain unchanged.