TORONTO, Jan. 22 /CNW/ - The Skor Food Group Inc. (TSX.V: SKF)("SKOR" or the "Company"), is pleased to announce that subject to approval of the TSX Venture Exchange and shareholder approval at its annual and special meeting of its shareholders to be held on February 25, 2010, it will amend its articles of incorporation to effect a consolidation (reverse split) of its common shares on a 100:1 basis and the immediate split on a 1:100 basis. If approved, the consolidation is to take place on Sunday, February 28, 2010 and the split will follow on Monday, March 1, 2010 at 12:01 A.M. or other such date approved by the Board of Directors.
As a result, shareholders holding less than 100 pre-consolidation shares will receive a cash payment in exchange for their shares equal to the weighted average trading price of its shares on the TSX Venture Exchange for the 10 trading days prior to January 20, 2010. The Company currently has 25,855,757 common shares issued and outstanding and upon completion of the proposed consolidation will have approximately 25,831,976 common shares outstanding. Shareholders owning more than 100 pre-consolidation shares will not be affected by the consolidation/split other than to be asked to tender their old share certificates for a new certificate bearing the new CUSIP number.
SKOR decided to undertake this program to reduce the large number of shareholders who hold less than 100 shares, representing approximately 82% of the total registered holders, but less than 0.1% of the total outstanding shares. The effect of this proposal is to provide these shareholders with cash for their holdings, without cost or commission and to eliminate the high costs incurred by the Company to issue mailings and communications to such holders. SKOR estimates that such measures will result in significant savings in its annual administrative costs.
Neither The TSX Venture Exchange nor its Regulation Services Providers (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE THE SKOR FOOD GROUP INC.
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