VANCOUVER, Dec. 3, 2013 /CNW/ - Reliance Resources Limited (TSX: RI)
("Reliance") or ("the Company") provides the following updates.
On October 17, 2013, the Company announced that the TSX placed the
Company under review for not meeting the TSX's continued listing
requirements due to the Company's trading price, market capitalization
and lack of sufficient independence at the Board and executive levels.
The Company has since addressed the deficiencies at the Board and
executive levels by appointing two new independent directors, George
Young and Michael Nelson, as announced on October 23, 2013 and November
26, 2013, respectively, and appointing a new Chief Financial Officer,
Kevin Kye, as announced on October 18, 2013.
Given the current market conditions and the TSX's ongoing review of the
Company for not meeting the TSX's minimum market capitalization
requirements and trading price, the Company has determined that it is
in its best interests to seek a transfer listing from the TSX to the
TSX Venture Exchange ("TSX-V"). Accordingly, the Company has applied to
the TSX-V to transfer the listing of the Company's common shares (the
"Common Shares") onto the TSX-V under the streamlined procedures of the
The Company also announces that it will be seeking shareholder approval
to consolidate the Company's issued and outstanding Common Shares on
the basis of one (1) post-consolidation Common Share for every five (5)
pre-consolidation Common Shares (the "Share Consolidation"). The
Company has called an annual general and special meeting of
shareholders to be held on December 30, 2013 (the "Meeting") for the
purposes of approving, among other things, the proposed Share
Consolidation. The proposed Share Consolidation is also subject to the
approval of the TSX-V.
It is management's view that the Share Consolidation will benefit the
Company by increasing investor interest, improving trading liquidity
and improving the Company's ability to raise additional capital and at
a higher price per share.
The Company has an aggregate of 122,152,099 Common Shares issued and
outstanding. Upon completion of the Share Consolidation, the Company
will have an aggregate of approximately 24,430,419 Common Shares issued
and outstanding. If the Share Consolidation is approved by the
shareholders at the Meeting, the Board of Directors will be authorized
to implement the Share Consolidation when and whether it deems it
appropriate to do so, provided that if the Share Consolidation is not
implemented by the next annual general meeting, the resolution
approving the Share Consolidation will lapse.
Neither the TSX Venture Exchange nor its Régulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
SOURCE: Reliance Resources Ltd.
For further information:
For further Information please contact Nicholas Clark on +1 864 991 6687