TORONTO, Sept. 23, 2016 /CNW/ - Mitec Technologies Inc. ("Mitec", or the "Corporation") announces that the board of directors has authorized a consolidation of the issued and outstanding common shares of the Corporation (the "Common Shares") on the basis of 1 post-consolidated Common Share for 5.2 million pre-consolidation Common Shares (the "Consolidation") as outlined in the resolution passed by the Corporation at the special and annual meeting which took place on June 6, 2016.
Initially announced in March, 2016, the Consolidation and a subsequent payment, set at two cents per common share to all post-consolidation fractional shareholders (the "Payment"), was proposed to the Corporation's shareholders as the best strategy to wind up the Corporation's operations as a publicly-traded, listed company as opposed to ultimately wiping out all shareholder value through the associated costs relating to continuing a public company listing.
It should be noted that the Payment will be made to only post Consolidation fractional shareholders and that the Corporation's remaining sole shareholder waived any pro-rata cash payment so that fractional shareholders could benefit from as much liquidity as the Corporation could generate.
Since the Corporation will no longer meet listing requirements post Consolidation, it is anticipated that Mitec's Common Shares will no longer be traded once the Consolidation takes place and that the TSX Venture Exchange will initiate a delisting process in the very near future.
Mitec expects to amend its articles of incorporation which will effect the Consolidation on September 30, 2016 and has arranged with its service providers to make the two cent distribution to its shareholders as soon as possible thereafter.
This news release contains forward-looking statements which reflect Mitec's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including, in the regulatory environment and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mitec Technologies Inc.
For further information: Mr. Jeffrey Mandel, President & CEO, (905) 822-8170