Greetings Brennan,
ÿÿÿÿÿ>> Do you really think they are going to do a reverse split???
From the Form of Proxy available at sedar.com (distributed to shareholders with the Management Information Circular):
2.ÿÿÿ FOR ÿÿÿÿ AGAINST
a special resolution to amend the articles of the Corporation to: (i) changing the common shares of the Corporation by consolidating the common shares on the basis of 1 new common share for every 5 old common shares of the Corporation presently held; (ii) change the name of the Corporation to "CD Plus Inc." or such other name as may be acceptable to the board of directors of the Corporation and applicable regulatory authorities; and (iii) authorize the creation of a new class of special shares, convertible into common shares on a 1 for 1 basis upon the attainment of certain 20 day weighted average common share trading prices on The Toronto Stock Exchange (the "TSE").
Thus, subject to shareholder approval, the reverse-split will most likely go forth.
ÿÿÿÿÿ>> How many shares o/s?
As at January 31, 1999: 22,608,531. Subsequent event note: "the Company [agrees to] acquire all of the outstanding shares of CD Plus.com Inc. in exchange for 185,185,185 common shares and 55,000,000 special shares, yet to be created, plus 10,000,000 shares that will be either special or common. [...] The acquisition will result in the current shareholders of CD Plus.com Inc. acquiring control of the Company and the acquisition will be accounted for as a reverse takeover. In addition, the Company's name will be changed to CD Plus.com Inc.
So, doing the math, result will be minimally 208.8M shares, and fully diluted as many as 272.8M shares. After 5-for-1 consolidation, shares O/S will be about 42M shares, f/d 55M shares.
Ben |
