ReeXploration Sets Nov. 6 Effective Date for 1-for-5 Share Consolidation

ReeXploration Inc. said Tuesday the TSX Venture Exchange accepted its 1-for-5 share consolidation, which is scheduled to take effect Nov. 6 and will cut its share count to about 27 million.

The company expects its outstanding common shares to fall from 135,229,107 to approximately 27,045,821, subject to rounding. Each five existing shares will become one share, and trading on the consolidated basis is expected to begin at market open Nov. 6.

ReeXploration’s name and TSXV symbol, REE, will remain unchanged. Fractional shares will be rounded up to whole shares, with no cash paid in lieu.

The company says the consolidation will not change shareholders’ percentage ownership, apart from minor differences caused by rounding. Outstanding options and warrants will be adjusted proportionately under their terms.

Shareholders approved the plan at an annual and special meeting Sept. 28. The board described the consolidation as “necessary to attract new investment.” The consolidation aims to improve marketability, broaden investor appeal and better position the company to raise capital.

The company is advancing the Eureka Project in central Namibia, a project combining rare-earth and uranium exploration. The consolidation is scheduled to take effect Nov. 6.