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.