SPOKANE, WASHINGTON, February 4, 1999
Gold Reserve Corporation (TSE: GLR – NASDAQ: GLDR) announced today that the shareholders
approved the formation of a Canadian parent company, GOLD RESERVE INC., effective on
Thursday, February 4, 1999.
Gold Reserve Inc. will be listed for trading in the next several weeks on The Toronto Stock Exchange
under the symbol GLR.A and on NASDAQ under the same symbol GLDR, concurrent with the
delisting of Gold Reserve Corporation. The old certificates will represent share certificates of Gold
Reserve Inc., so no additional action is necessary on the part of existing shareholders.
As a result of the exchange transaction, there are potential significant tax benefits for our Canadian
shareholders. The exchange of shares of the Company for Gold Reserve Inc. is a "deemed disposition"
resulting in a taxable gain or loss, as the case may be, for Canadian tax purposes. Based on the recent
trading price of the Company's shares, we expect a majority of our Canadian shareholders will realize
a tax loss for the year ending December 31, 1999. For U.S. tax purposes, shareholders will recognize a
gain, if any, but not loss on the exchange. The closing share price of Gold Reserve Corporation on
February 4, 1999 will be the price used to calculate any tax impact of the exchange transaction.
Rockne J. Timm President and CEO stated, "The overwhelming approval of this transaction by our
shareholders marks a new era for the Company. The formation of Gold Reserve Inc. is integral to our
long-term success." |
