Baymount Incorporated announced on Friday, May 28 that its shareholders approved a resolution authorizing the consolidation of its common shares on a one-for-twenty basis at the Annual and Special Meeting of the Company
which was held on May 27, 2010.
An aggregate of 43,571,288 shares were represented at the meeting either in person or by proxy, representing approximately 27% of the issued and outstanding common shares of the company, with 96.3% of the votes being cast in favour of the consolidation resolution.
For each 20 common shares currently held by a Baymount shareholder, each shareholder will receive one common share after the consolidation takes effect. Completion of the consolidation is subject to the approval of the TSX Venture Exchange. Materials are being submitted to the TSX-V requesting such approval and a further announcement will be made once such approval is obtained.
The consolidation will not materially affect the percentage ownership in the company of shareholders even though such ownership will be represented by a smaller number of common shares. The consolidation will merely proportionally reduce the number of common shares held by shareholders. As at the date hereof, there are an aggregate of 160,532,117 common shares issued and outstanding. It is expected that, upon completion of the consolidation, there will be an aggregate of approximately 8,026,606 common shares issued and outstanding.
It is management's view that the consolidation is in the best interests of the shareholders of the company, as it is anticipated that the post-consolidation market price per share will facilitate further financing activities, which are expected to be more viable. At present prices, financing alternatives are extremely limited, as the recent trading price of the common shares has fluctuated between roughly $0.01 and $0.02, whereas the minimum offering price under a private placement is $0.05.
Following receipt of TSX-V approval, the company will complete the necessary corporate filings in order to give effect to the consolidation. Once completed, a letter of transmittal will be sent by mail to shareholders advising them that the consolidation has taken effect and instructing them to surrender the certificates evidencing their common shares for replacement certificates representing the number of common shares to which they are entitled as a result of the consolidation. Until surrendered, each certificate formerly representing common shares will be deemed for all purposes to represent the number of common shares to which the holder thereof is entitled as a result of the consolidation.
It should be noted that the name of the company is not changing, nor is its trading symbol.
(Baymount)