Calgary, Alberta – Petrox Resources Corp. (TSXV: PTC) (the “Corporation” or “Petrox“) announces details of its proposal to consolidate all of the issued and outstanding Common Shares of the Corporation on an up to five to one (5:1) basis (the “Consolidation“).
The Corporation’s common shares trade on the TSX Venture Exchange (the “Exchange“). The policies of the Exchange may require that an issuer consolidate its common shares in the event that the issuer completes a private placement at an issue price of less than $0.05 per share. In anticipation of the possibility that the Corporation will complete such a private placement, at the Corporation’s upcoming meeting of shareholders to take place on June 8, 2022, the Corporation intends to present a resolution approving the Consolidation for consideration by the shareholders. The Corporation intends to complete the Consolidation only if it is required pursuant to the policies of the Exchange. If passed, the resolution to approve the Consolidation will expire 15 months from the date of approval.
Under the Consolidation, for every five Common Shares currently held by a Shareholder (or such lesser number as may be applicable in the event that directors determine to employ a Consolidation ratio that is less than five to one (5:1) basis), each Shareholder will, as a result of the Consolidation, receive one Common Share after the Consolidation takes effect. There are currently 55,132,258 Common Shares issued and outstanding in the share capital of the Corporation. If the Consolidation is approved and the directors effect the Consolidation on a 5:1 basis, there will be an aggregate of 11,026,452 Common Shares issued and outstanding in the share capital of the Corporation, subject to rounding.
The Consolidation will not materially affect the percentage ownership in the Corporation of Shareholders even though such ownership will be represented by a smaller number of Common Shares. The Consolidation will merely proportionally reduce the number of Common Shares held by Shareholders.