CALGARY,
Aug. 6, 2013 /CNW/ - Galway Metals
Inc. (TSX-V: GWM) ("Galway") announces the proposed
consolidation of its issued and outstanding common shares on the
basis of one (1) new common share for every three (3) existing
common shares (the "Consolidation"), subject to shareholder
and TSX Venture Exchange approval. The proposed amendment to the
articles of Galway to allow for the Consolidation will be put
before shareholders at a special meeting of shareholders to be held
on September 10, 2013.
As of July 29,
2013, there were 149,685,739 common shares issued and
outstanding and, if the proposed consolidation is approved, there
will be 49,895,246 common shares. The implementation of the
Consolidation would not affect the total shareholders' equity of
Galway or any components of shareholders' equity as reflected on
Galway's financial statements except: (i) to change the number of
issued and outstanding post-consolidation common shares; and (ii)
to change the stated capital of the post-consolidation common
shares to reflect the Consolidation.
Both management and the Board of Directors
believe that, following the plan of arrangement on December 20, 2012 between Galway, Galway
Resources Ltd., Galway Gold Inc., and AUX Acquisition 2 s.à r.l and
AUX Canada Acquisition 2 Inc., it is in the best interests of
Galway to reduce the number of outstanding shares by way of a
consolidation. Additional potential benefits of the consolidation
include a higher post-consolidation share price, resulting in
greater interest in Galway, lower transaction costs, and improved
trading liquidity.
Full details regarding the proposed
consolidation are included in the Management Information Circular
dated August 6, 2013 provided in
connection with the Special Meeting of shareholders. Galway's name
will not change in connection with the Consolidation.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward Looking Statements:
Certain statements contained in this release
containing words like "believe", "intend", "may", "will", "expect",
"would", "potential" and other similar expressions, are
forward-looking statements that involve a number of risks and
uncertainties. Statements in this release that are forward-looking
statements are subject to various risks and uncertainties. Such
information contained herein represents management's best judgment
as of the date hereof based on information currently available.
Galway Metals does not assume the obligation to update any
forward-looking statement, except as required by law.
SOURCE Galway Metals Inc