CALGARY, Aug. 2, 2016 /CNW/ - Montana Exploration Corp. ("Montana Exploration" or the "Company") (TSXV: MTZ) today announced the details of the consolidation of its common shares on the basis of one new share for each five old shares (5:1), and the Company's consolidated common shares are expected to begin trading on the Toronto Venture Exchange (the "Exchange") when the market opens on August 3rd, 2016. The purpose of the consolidation is to increase the common share price to facilitate various corporate finance transactions.
Share Consolidation Details
Each five (5) common shares issued and outstanding immediately prior to the market opening on August 3rd, 2016 will automatically be reclassified, without any action of the holder thereof, into one common share. As a result of the share consolidation, the number of issued and outstanding common shares will be reduced from 248,954,407 to 49,790,881 (subject to fractional treatment). Each Shareholder's percentage ownership in the Company and proportional voting power shall remain essentially unchanged after the share consolidation.
No fractional shares will be issued as a result of the share consolidation. Fractional interests of 0.5 or greater will be rounded up to the nearest whole number of shares and fractional interests of less than 0.5 will be rounded down to the nearest whole number of shares.
Registered shareholders of the Company have been sent a letter of transmittal (the "Letter of Transmittal") from the Company's transfer agent, Computershare Investor Services Inc., which enables registered shareholders to exchange their old share certificate representing pre-consolidation common shares for post-consolidation common shares. A copy of the Letter of Transmittal is also available on the Company's website or on www.SEDAR.com. 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.
Shareholders who hold their common shares in brokerage accounts are not required to take any action to effect the exchange of their common shares.
ABOUT MONTANA EXPLORATION CORP.
Montana Exploration Corp. is an oil and gas exploration and production company focusing on the Shaunavon oil and Eagle gas opportunities underlying its extensive land holdings and drilling rights in the state of Montana. In the United States, the company operates through its wholly-owned subsidiary, Montana Land & Exploration, Inc. The company's common shares are listed on the TSX Venture Exchange under the trading symbol "MTZ". Additional information regarding the company is available at www.SEDAR.com or at www.MontanaExplorationCorp.com.
Neither the 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.
SOURCE Montana Exploration Corp.
For further information: Charles Selby, Chairman and Chief Executive Officer or Donald Foulkes, President, by telephone at +1.403.265.9091 or by mail at 2300, 144 4th Ave. S.W., Calgary, Alberta T2P 3N4.