Golden Star Resources Ltd. announces that its board of directors has approved a 5:1 consolidation of the common shares of the company.
Golden Star Resources Ltd. (NYSE American:GSS, TSX:GSC, GSE: GSR) announces that its board of directors has approved a 5:1 consolidation of the common shares of the company. At a special meeting of the company’s shareholders on September 17, 2018, the company’s shareholders granted authority to the board to effect the consolidation with 96.62 percent of votes cast in favour. The common shares of the company are expected to begin trading on a consolidation-adjusted basis when the market opens on or about October 30, 2018.
As quoted in the press release:
Common shareholders will receive one post-consolidation common share for every five pre-consolidation common shares owned. All fractional shares created by the consolidation will be rounded down to the nearest whole share, as provided by Golden Star’s management information circulated, dated August 14, 2018.
Golden Star’s common share count will be reduced from approximately 544.0 million outstanding common shares to approximately 108.8 million outstanding common shares post-consolidation. Golden Star’s common shares will continue to trade on the Toronto Stock Exchange, the NYSE American and the Ghana Stock Exchange under the existing ticker symbols but will trade under a new CUSIP. The company believes that a reduction in the number of outstanding common shares will increase Golden Star’s flexibility and competitiveness in the marketplace and may make its shares more attractive to potential investors.
Golden Star’s transfer agent, American Stock Transfer and Trust Company (AST), will act as the exchange agent for the consolidation. Registered shareholders will be sent a letter of transmittal from AST as soon as practicable after the effective date of the consolidation. The letter of transmittal will contain instructions on how to surrender certificate(s) representing pre-consolidation common shares to AST. AST will forward to each registered shareholder who has sent the required documents a new share certificate representing the number of post-consolidation common shares to which the shareholder is entitled. Until surrendered, each share certificate representing pre-consolidation common shares will be deemed for all purposes to represent the number of whole post-consolidation common shares to which the holder is entitled as a result of the consolidation.