Caribbean Resources Corporation (TSXV:CRC), formerly known as Pacific Coal, has announced that is has mailed and filed meeting materials with respect to the upcoming special meeting of common shareholders to be held at 11:00 am on Thursday, March 31, 2016 in Toronto. Shareholders will be asked to vote on a special resolution authorizing a share consolidation of all of the company’s issued and outstanding shares on the basis of 1 new common share of the company for 250,000 existing common shares, also the voluntary delisting of the company’s common shares from the TSX Venture Exchange followed by an application to cease to be a reporting issuer in the applicable jurisdictions. The record date for voting at the Meeting has been set at the close of business on Monday, February 22, 2016.
In consideration of the current financial condition of the company and the downturn in the commodity sector, management and the board of directors of the company consider it prudent to take appropriate action to reduce costs, a significant portion of which is as a result of the company being a listed reporting issuer. Such costs include those involved in filing continuous disclosure documents including audited financial statements, the issuance of news releases, printing and mailing materials to shareholders, maintaining a listing on the TSXV, renewing the company’s stock option plan on an annual basis, among others.
Caribbean Resources (Pacific Coal) also announces that Miguel Rodriguez has resigned from the board of directors for personal reasons. “On behalf of the company, I would like to extend our thanks to Mr. Rodriguez for his efforts and contributions to date and wish him all the best in his future endeavors,” said Hernan Martinez, Executive Chairman of the company.
In order for the company to cease to be a reporting issuer, the company has to have fewer than 50 shareholders worldwide and fewer than 15 shareholders in each province in Canada. Therefore, only whole new common shares will be issued under the share consolidation. Any fractional interest will be cancelled and holders of less than one new common share will cease to hold common shares in the capital of the company, and such shareholders will be entitled to receive cash consideration, rounded to the nearest cent, equal to the number of pre-consolidation common shares held multiplied by an amount equal to the average weighted trading price of the pre-consolidation common shares for the 30 trading days preceding the date of the company’s management information circular delivered in connection with the meeting, being $0.0052 per common share.
Caribbean Resources Corporation is a Canadian-based mining company engaged in the acquisition, exploration and production of coal and coal-related assets from properties located in Colombia. A copy of the circular is available on the company’s profile at www.sedar.com as well as the company’s website at www.caribbeanresources.ca.
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