big johnny hell
11 months ago
i hope this is good news. does this apply to US share holds as well?
VANCOUVER, BC, Nov. 2, 2023 /CNW/ - Zinc8 Energy Solutions Inc. ("Zinc8" or the "Company") (CSE: ZAIR) (OTC: ZAIRF) (FSE: 0E9) announces that its board of directors has approved a consolidation (the "Consolidation") of the common shares in the capital of the Company (the "Common Shares") at a ratio of 10 pre-Consolidation Common Shares (the "Existing Shares") for one post-Consolidation Common Share (the "Consolidated Shares"). The Share Consolidation remains subject to the approval of the Canadian Securities Exchange (the "CSE"). The Company will issue a news release upon receiving CSE approval, announcing the effective date of the Share Consolidation. The Consolidated Shares will subsequently begin trading on a consolidated basis under the existing Company name and trading symbol.
Zinc8 Energy Solutions Logo (CNW Group/Zinc8 Energy Solutions Inc.)
The proposed share consolidation would result in the number of issued and outstanding common shares being reduced from the current outstanding 182,723,113 common shares to approximately 18,272,311 common shares, subject to rounding.
No fractional shares will be issued as a result of the share consolidation. Any fractional shares resulting from the share consolidation will be rounded up to the next whole common share, and no cash consideration will be paid in respect of fractional shares.
The company's board of directors believes that the share consolidation will provide the company with greater flexibility for the continued development of its business and the growth of the company, including financing arrangements.
The company will be obtaining a new CUSIP and ISIN number for the share consolidation. The record date and effective date of the share consolidation, and the new CUSIP and ISIN numbers, will be disclosed in a subsequent news release. Generally, with respect of a consolidation, the shares would commence quotation on the CSE on a consolidated basis on the first trading day prior to the record date, being the effective date, and the CSE would issue a bulletin to dealers advising of the share consolidation and effective date of trading on the consolidated basis. Notwithstanding the foregoing, the share consolidation is subject to regulatory approval, and the board of directors may, at its discretion, determine to amend the terms or not to move forward with the share consolidation.
The Company is in the process of securing alternate financing and the Board is canceling the proposed non-brokered private placement offering (the "Private Placement") announced on September 26, 2023 and revised on October 10, 2023.
The Company does not intend to obtain securityholder approval for the alternative financing in reliance on the exceptions outlined in section 4.6(2)(b) of Policy 4 of the Canadian Securities Exchange. Further to the Company's news release dated September 18, 2023, the Company needs additional funding to finance its operations and without such financing its ability to continue as a going concern is at risk. The independent directors of the Company have determined that pursuing alternate means of financing is in the best interests of the Company, and that it is not feasible to obtain securityholder approval for the alternate financing in a timely manner given the Company's circumstances.
The proceeds of the alternative financing will be used for working capital expenditures including operating expenses, payment of accounts payable, research and development, pursuing advancement of the Company's business plan, salaries and wages, and professional fees. Finder's fees and/or commissions may be paid in connection with that funding. This news release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.