Canacol Energy Ltd. Announces Share Consolidation
Canacol Energy Ltd. announced a consolidation of its common shares at a ratio of 5:1, approved by shareholders on December 19, 2022. The consolidation will reduce the number of outstanding shares from 170,557,290 to approximately 34,111,458, with trading on the Toronto Stock Exchange (TSX) expected to commence on a post-consolidation basis around January 20, 2023. The Colombian Stock Exchange (BVC) will halt trading from January 17, 2023, but will resume similarly around January 20. Proportional ownership and voting power for shareholders remain unchanged, except for minor adjustments due to fractional shares. Olympia Trust Company will facilitate the exchange of old share certificates for new ones.
- Share consolidation expected to strengthen stock value and improve liquidity.
- Proportional ownership and voting power of shareholders remain unchanged.
- Common Shares trading on the BVC halted starting January 17, 2023, which may disrupt trading for some investors.
CALGARY, Alberta, Jan. 17, 2023 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE) (OTCQX:CNNEF) (BVC:CNEC) today announced that, following shareholder approval of a consolidation of the common shares of the Corporation ("Common Shares") on the basis of five (5) existing pre-consolidation Common Shares for every one (1) post-consolidation Common Share (the "Consolidation") at the special meeting of the shareholders of the Corporation held on December 19, 2022, it has filed articles of amendment implementing the Consolidation.
The Common Shares will continue to be listed on the Toronto Stock Exchange (the "TSX") under the symbol "CNE" and the Common Shares are expected to begin trading on a post-Consolidation basis on the TSX on or about January 20, 2023. Following the Consolidation, the new CUSIP number for the Common Shares is 134808302 and the new ISIN for the Common Shares is CA1348083025.
In order to protect the interests of Canacol's shareholders holding their Common Shares through the Bolsa de Valores de Colombia (the Colombian Stock Exchange) (the "BVC") and to avoid operational difficulties resulting from the Consolidation process, the BVC has decided to halt the trading of the Common Shares on the BVC starting on January 17, 2023. It is expected that trading of the Common Shares on the BVC will resume on a post-Consolidation basis on or about January 20, 2023. Trading of the Common Shares on the TSX will not be halted.
As a result of the Consolidation, the 170,557,290 Common Shares issued and outstanding prior to the Consolidation have been reduced to approximately 34,111,458 Common Shares (disregarding the treatment of any resulting fractional shares). Each shareholder's percentage ownership in the Corporation and proportional voting power remains unchanged after the Consolidation, except for minor changes and adjustments resulting from the treatment of any resulting fractional Common Shares.
The Corporation’s transfer agent, Olympia Trust Company ("Olympia"), will act as the exchange agent for the Consolidation. In connection with the Consolidation, Olympia has sent a letter of transmittal to registered shareholders which will enable them to exchange their old share certificates for new share certificates, or alternatively, a Direct Registration System Advice/Statement, representing the number of new post-Consolidation Common Shares they hold, in accordance with the instructions provided in the letter of transmittal. Registered shareholders will be able to obtain additional copies of the letter of transmittal through Olympia. Until surrendered, each share certificate representing pre-Consolidation Common Shares will represent the number of whole post-Consolidation Common Shares to which the holder is entitled as a result of the Consolidation.
Non-registered beneficial holders holding their Common Shares through intermediaries (securities brokers, dealers, banks, financial institutions, etc.) will not need to complete a letter of transmittal and should note that such intermediaries may have specific procedures for processing the Consolidation, including the treatment of fractional shares. Shareholders holding their Common Shares through an intermediary and who have any questions in this regard are encouraged to contact their intermediary.
About Canacol
Canacol is a natural gas exploration and production Corporation with operations focused in Colombia. The Corporation's common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNEC, respectively.
This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward looking statements are frequently characterized by words such as "plan", "expect", "project", "target", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to the expected effective date for trading of the post-Consolidation Common Shares on the TSX. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward-looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law.
FAQ
What is the stock consolidation date for Canacol Energy Ltd. (CNNEF)?
How will the share consolidation affect Canacol Energy shareholders?
When will Canacol Energy's shares start trading post-consolidation?
Why is Canacol Energy suspending trading on the Colombian Stock Exchange?
