Lloyds / Halifax shares10 Jan 2022 18:48
Update received today:
Demerger.??And??Consolidation.??1 New Napster Group Plc (Napster) Ordinary share for every 750 Existing Napster shares held.??And??Cancellation of Listing on the Alternative Investment Market (AIM).
Important Information & Other Key Dates:
On 2nd December 2021 Napster announced the it had entered into an agreement to sell Rhapsody, a subsidiary of the Company, to NM Inc (NM) in exchange for NM shares. As part of the Demerger Napster will Consolidate its Ordinary shares and Cancel its Listing on the AIM. On completion of the Demerger shareholders will receive 1 New share in NM for each post-Consolidated Napster share held.
The Demerger, Consolidation and Cancellation of Listing received shareholder approval at the General Meeting held on 20th December 2021.
Subsequently the Consolidation is expected to become effective on 26th January 2022, the Demerger is expected to complete on 27th January 2022 and the Cancellation of Listing is expected to become effective on 28th January 2022 with the last day of trading in Napster shares expected to be 27th January 2022.
Unless you hold your shares in a Sharebuilder account, no fractions of Napster shares will be issued. If you therefore hold less than the qualifying 750 Existing Napster shares you will not receive any New Napster shares. No fractions of NM shares will be issued even if you hold your Existing Napster shares in a ShareBuilder account. Any resulting cash entitlements will be dealt with in accordance with our Terms & Conditions.
When a company consolidates its share capital the number of shares in the Company reduces. This impacts the share price as the total value of shares remains the same but there are fewer shares in circulation, so the price can increase significantly. You may therefore notice an increase in the share price when the Consolidation becomes effective.
You should be aware that if you have not sold or otherwise transferred your Napster shares prior to the Cancellation of Listing, you will not be able to sell or otherwise deal in them on the AIM after that time.
It is not yet known when the New NM shares will be received. NM is expected to list its shares for trading on a recognised US stock exchange by mid-2023. Should NM successfully list its shares on any stock exchange we will notify you, however, please be aware that there is no guarantee NM will succeed in any such endeavour.
As the Napster and NM shares will not be listed on a Recognised Exchange, they will no longer qualify to be held within an ISA product. Should you hold these shares within an ISA, we will shortly transfer your Napster and NM shares to your Share Dealing Account. If you do not have a Share Dealing Account, we will open one for you.
Should you retain your holding of Napster shares we will update your account accordingly upon receipt of your entitlements.
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