Arrow Minerals Limited (ASX:AMD) Announces Capital Consolidation
Arrow Minerals Limited (ASX: AMD) has announced its intention to undertake a capital consolidation at a 20 to 1 ratio, pending shareholder approval. A General Meeting is set for 2 January 2025 to discuss this proposal.
Objectives of the Consolidation
The proposed consolidation aims to reduce the number of shares on issue, creating a more efficient capital structure. The move is anticipated to facilitate growth and align with peer company frameworks, ultimately resulting in a share price attractive to a broader range of investors.
Impact on Shareholders
The consolidation will affect individual holdings equally, ensuring no material change in each shareholder’s percentage interest. Following the consolidation, the total number of shares is expected to decrease from approximately 13.2 billion to around 661.2 million.
Timetable and Option Changes
If approved, the capital consolidation process will include detailed dates for trading and share registry updates. All current options and performance rights will also consolidate in the same ratio, with respective adjustments to their exercise prices.
Future Developments
Furthermore, adjustments will be made to shares issuable to the Vendor under the Share Purchase Option Agreement regarding the Niagara Bauxite Project in Guinea, aligning with the consolidation.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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