Shareholders give up 3 shares for 1?
Euromax announces that shareholders will be asked at the annual general and special meeting of shareholders to be held on May 22, 2012 (the "Meeting") to consider a special resolution to approve a consolidation of the Company's issued and outstanding common shares on the basis of one post-consolidation share for every three pre-consolidation shares, or such lesser whole number of pre-consolidation shares as the Company's board of directors may determine. In the event that the proposed consolidation is conducted on a 1 for 3 basis, based on the Company's currently outstanding common shares of 166,575,442, the Company would have approximately 55,525,147 common shares outstanding following the consolidation. The Company'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 the Company. The Company 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.
The Company also announces that the following persons are proposed to be elected as directors of the Company at the Meeting: Mark Gustafson, Randal Matkaluk and Quinton Hennigh, each of whom is currently a director of EurOmax, and Martyn Konig, Varshan Gokool and Steve Sharpe, each of whom is a new director nominee.
Additional information regarding the proposed consolidation and the proposed director nominees 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.
