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VANCOUVER, April 23 /CNW/ - GMV Minerals Inc's (the "Company" or "GMV") (TSX-V:GMV) shareholders, at its annual and special meeting of shareholders held on December 21, 2009 approved a special resolution to consolidate its issued and outstanding common shares at a ratio of one new common share for up to every five outstanding common shares.
However, the Company proposes a consolidation on a two-to-one basis (2:1), thus reducing the current number of issued and outstanding shares from 33,843,454 to 16,921,727. The Company's consolidated common shares will begin trading on the TSX Venture Exchange under the same symbol "GMV" effective as of the opening of trading on April 26th, 2010.
The number of escrowed shares would decrease to 1,117,052 from 2,234,104. This share consolidation may have the effect of raising the market price of the Company's shares, which could appeal to certain investors that find shares trading at above certain prices more attractive from an investment perspective. No name change or change of trading symbol will be undertaken in connection with the consolidation.
The board of directors of the company has concluded that the consolidation is in the best interests of the shareholders and that the consolidation will have no substantive economic effect on the shareholders, whose ownership percentage in the company will remain unchanged. The consolidation is expected to lead to increased interest to a wider audience of potential investors, and would better position the company to broaden its financing alternatives and pursue acquisition opportunities. The share consolidation is subject to the approval of the Exchange.
In addition the Company advises that it has entered into agreements, subject to the acceptance of the TSX Venture Exchange, to settle $60,000 of debt by the issuance of shares at a deemed pre-consolidation price of $0.10 (post-consolidated price of $0.20) with directors, officers and other creditors.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way passed upon the merits of the proposed Transaction and has neither approved nor disproved the contents of this press release.
This release includes forward-looking statements regarding GMV, Targetco and their respective businesses. Such statements are based on management's current expectations. The forward-looking events and circumstances discussed in this release, including completion of the proposed Transaction between GMV and Targetco and the Financing, may not occur and actual operating results could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and GMV undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE GMV Minerals Inc.
For further information: For further information: GMV Minerals Inc., Ian Klassen, Tel: (604) 899-0106, www.gmvminerals.com, Email: email@example.com