Galway Metals (GWM-V) to seek shareholder OK for consolidation
Aug 6, 2013 - News Release
Galway Metals Inc. is proposing to consolidate its issued and outstanding common shares on the basis of one new common share for every three existing common shares, subject to shareholder and TSX Venture Exchange approvals. The proposed amendment to the articles of Galway to allow for the consolidation will be put before shareholders at a special meeting of shareholders to be held on Sept. 10, 2013. As of July 29, 2013, there were 149,685,739 common shares issued and outstanding, and, if the proposed consolidation is approved, there will be 49,895,246 common shares. The implementation of the consolidation would not affect the total shareholders' equity of Galway or any components of shareholders' equity as reflected on Galway's financial statements, except to change the number of issued and outstanding postconsolidation common shares, and to change the stated capital of the postconsolidation common shares to reflect the consolidation.
Both management and the board of directors believe that, following the plan of arrangement on Dec. 20, 2012, between Galway, Galway Resources Ltd., Galway Gold Inc. and AUX Acquisition 2 SARL and AUX Canada Acquisition 2 Inc., it is in the best interests of Galway to reduce the number of outstanding shares by way of a consolidation. Additional potential benefits of the consolidation include a higher postconsolidation share price, resulting in greater interest in Galway, lower transaction costs and improved trading liquidity.
Full details regarding the proposed consolidation are included in the management information circular dated Aug. 6, 2013, provided in connection with the special meeting of shareholders. Galway's name will not change in connection with the consolidation.
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