Santa Rosa Resources Corp Announced Proposed Stock Consolidation

VANCOUVER, Oct. 19, 2012 /CNW/ - Santa Rosa Resources Corp. (TSX Venture: STR.H) announces that shareholders will be asked at the annual general meeting of shareholders to be held on November 15, 2012 to consider an ordinary resolution to approve a consolidation of Santa Rosa's common shares on the basis of one post-consolidation share for every ten pre-consolidation shares, or such lesser number of pre-consolidation shares as the board of directors may determine.

In the event that the proposed consolidation is conducted on a 1 for 10 basis, based on Santa Rosa's currently outstanding common shares of 44,713,238, Santa Rosa would have approximately 4,471,323 common shares outstanding following the consolidation.

Santa Rosa's board of directors believes that the existing share structure may not be conducive to completing additional equity financings which will be required in the future, and that this proposed consolidation may be required to facilitate new equity investments in Santa Rosa.

Santa Rosa does not intend to change its name in connection with the proposed consolidation.  The proposed consolidation is subject to shareholder approval and acceptance for filing by the TSX Venture Exchange.

Additional information regarding the proposed consolidation is provided in the management information circular for the Meeting.  The information circular and other materials relating to the Meeting have been mailed to registered shareholders and filed on SEDAR.

Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable law.

Neither 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.

 

SOURCE Santa Rosa Resources Corp.

Copyright 2012 Canada NewsWire

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