MUG, Murgor, anotherone to announce a R/S:
"Murgor Resources proposes share consolidation and shareholder rights plan
10/1/2007
MONTREAL, Oct. 1, 2007 (Canada NewsWire via COMTEX News Network) --
Murgor Resources Inc. (TSX-V: MUG) announces that at an annual and special meeting of shareholders to be held on October 25, 2007, shareholders will consider an amendment to Murgor's Articles so as to consolidate the issued and outstanding shares on the basis of one share for every six shares issued and outstanding. There are currently 112,925,443 shares issued and outstanding. The share consolidation would result in approximately 18,820,907 issued and outstanding common shares.
Murgor has proposed the consolidation of its shares in order to facilitate future financings, intended to advance Murgor's Hudvam and Wim deposits to the production stage. Murgor is currently proposing the completion of feasibility studies at its Hudvam and Wim deposits by the end of 2008 and by mid-2009, respectively. Murgor must also finance its continued exploration and work commitments on its other properties in Manitoba and Saskatchewan. In this regard, Murgor's Board of Directors is considering a rights offering to Murgor's shareholders, thereby giving all shareholders an equal opportunity to participate in Murgor's growth. The rights offering to the shareholders is expected to commence shortly after the effective date of the share consolidation. Under the rights offering, Murgor's shareholders on the rights offering record date would be given the right to subscribe for additional common shares. It is the intention of Murgor's Board of Directors to set the exercise price of the rights at the maximum permitted discount under the policies of the TSX Venture Exchange.
If shareholders approve the share consolidation, the Board of Directors will issue a press release, announcing a record date for the consolidation of the shares, in accordance with the policies of the TSX Venture Exchange. There will not be a change of corporate name in conjunction with the share consolidation. Under the policies of the TSX Venture Exchange, it will be necessary for Murgor to adopt a new stock symbol in connection with the share consolidation, which will be announced by way of press release..."
The right offer is in case of an hostile bid to takeover.
The R/S may not be that bad, but the ratio could not be worse.
A 1 for 6 may not affect people with 100K+ that much but leaves all small investors (10k to 25K shares) with a major headache of odd lots, (eg: 10K becomes 1666 shares...)
a 1 for 5 or 1 for10 is much neater.Even 1for 8 (10K=1250) doesn't leave a big mess and mad shareholders stuck with 'sell-at-a-loss' lots.
MUG is now at .15...
alen
|
