Gold Reserve Provides Update on Return of Capital Transaction (6/21/19)
SPOKANE, Wash.--(BUSINESS WIRE)--Gold Reserve Inc. (TSXV: GRZ) (OTCQX: GDRZF) (“Gold Reserve” or the “Company”) completed its previously announced return of capital transaction (the “Return of Capital Transaction”) on June 14, 2019, by way of a court approved plan of arrangement (the “Arrangement”). As previously announced, the Arrangement became effective at 12:01 a.m. (Pacific time) on June 14, 2019 (the “Effective Time”).
As described in the Company’s management information circular dated April 30, 2019, following the Effective Time, registered holders of its Class A common shares (the “Class A Shares”) are required to deposit certificates representing Class A Shares together with a duly completed letter of transmittal to Computershare Trust Company of Canada (“Computershare”), the Company’s transfer agent and depositary for the Return of Capital Transaction, in order to receive the distribution payable pursuant to the Return of Capital Transaction.
Non-registered holders of Class A Shares will have the distribution payable pursuant to the Return of Capital Transaction recorded in their accounts by their intermediaries and should contact their intermediaries with any questions about this process.
In its press release dated June 14, 2019 (the “June 14 Release”), the Company inadvertently implied that a record date for the entitlement to receive the distribution payable pursuant to the Return of Capital Transaction was set as of the close of business on June 13, 2019. The Company retracts such statement in the June 14 Release.
Due to the inadvertent implication that a formal record date had been set, Gold Reserve will compensate anyone who can satisfactorily demonstrate that they disposed of their Class A Shares between the time of dissemination of the June 14 Release at 3:20 p.m. (Eastern time) and the close of trading on June 18, 2019, thereby disposing of their entitlement to receive the distribution payable pursuant to the Return of Capital Transaction. Such compensation, if any, would be up to an amount equal to the distribution payable pursuant to the Return of Capital Transaction, being US$0.76 per Class A Share. Any person believing these circumstances apply to them must contact Gold Reserve at the address set out below no later than July 19, 2019 in order to receive any applicable amount of compensation. Based on the limited trading volume of the Class A Shares during the applicable period of time, the Company anticipates that the aggregate amount of financial exposure resulting from this matter, if any, will be non-material to the Company.
Full details of the Return of Capital Transaction are described in the Company’s management proxy circular and other related materials, including the letter of transmittal. Those documents are available without charge on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and are posted on the Company’s website at www.goldreserveinc.com.
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