Canadian mining company Libero Copper & Gold Corporation (TSXV: LBC) announced that it will consolidate the company’s common shares in an attempt to better position its stock in the market and attract more interest investors.
Overall, the company, which maintains a copper mining operation in Mocoa, currently has nearly 175 million common shares (both issued and outstanding) and the consolidation would cut this number by a factor of 10 down to roughly 17.5 million common shares. In its statement, Libero stated that the consolidation will be “on the basis of one new post-consolidation common share for every 10 pre-consolidation common shares,” per Libero.
The Vancouver-based company also outlined these details:
“Any fractional interest in Common Shares resulting from the Consolidation will be rounded down to the nearest whole Common Share. Registered shareholders will receive a letter of transmittal from the Company’s transfer agent, with information on how to replace their old share certificates / DRS statements with the new share certificates / DRS statements. Brokerage firms will handle the replacement of share certificates and DRS statements on behalf of their shareholder’s accounts. The exercise price and number of Common Shares issuable upon the exercise of Libero Copper’s outstanding stock options and warrants will be proportionately adjusted to reflect the Consolidation in accordance with the terms of such securities.”
Libero’s board of directors has approved the consolidation plans, which remain “subject to customary closing conditions, including the prior approval of the TSX Venture Exchange.”
(Photo credit: Libero Copper & Gold)