HBE Hornby Bay Mineral Exploration Ltd

Hornby Bay Mineral Exploration Ltd. (TSX VENTURE:HBE) ("Hornby Bay") announces a
proposed consolidation and subsequent share split of its common shares ("Common
Shares") in order to eliminate the number of odd-lot shareholdings that have
evolved over the years ("Share Restructuring Plan").


Reasons for Restructuring

Hornby Bay currently has outstanding 57,785,150 Common Shares. Based on recent
data, approximately 22,550 or 0.01% of the Common Shares are held by an
estimated 314 shareholder accounts with current holdings of fewer than 100
shares.


Shareholders with small or odd-lot holdings have had no cost effective option to
dispose of their shares. The consolidation proposal provides a cost effective
liquidity option for small shareholders to sell their holdings and liquidate
their investment on favourable terms, relative to current and recent market
trading prices without payment of brokerage fees that in many cases would be
more than their sale proceeds.


As a reporting issuer, Hornby Bay is required to disseminate to registered and
beneficial shareholders interim statements, annual statements and associated
continuous disclosure materials. In the case of many small shareholders, the
administrative cost associated with providing such services represents a
disproportionately large percentage of the total share value of their
investment. Hornby Bay spends a significant amount of money each year printing
and mailing materials required by statute, such as annual reports and
information circulars, to these small shareholders and serving their accounts
through Hornby Bay's registrar and transfer agent. The effect of the proposed
consolidation will be to reduce administrative costs associated with maintaining
a large shareholder base of odd-lot and small shareholders, by significantly
reducing the number of these shareholders.


Mechanics of Restructuring

The basis of consolidation proposed Common Shares will be one (1)
post-consolidated Common Share for each one hundred (100) pre-consolidated
Common Shares (the "Consolidation"). Holders of fewer than 100 Common Shares who
do not elect to increase their holdings to 100 or more Common Shares prior to
the effective date of the share consolidation can tender their Common Shares for
cash consideration and their Common Shares would be cancelled. Any holder of
less than one (1) post-consolidated Common Share will cease to hold Common
Shares and will be entitled to be paid cash consideration equal to that number
of pre-consolidation Common Shares held by the holder multiplied by an amount
equal to the average weighted trading price of the Common Shares for the ten
trading days preceding the Consolidation effective date, rounded to the nearest
whole cent. Immediately following the Consolidation, the remaining Common Shares
will be split on the basis of one hundred (100) post-split shares for each one
(1) post-consolidated share to achieve minimum distribution and other
requirements of the TSX Venture Exchange ("Exchange"). Fractions will be rounded
to the nearest whole number on the split.


Shareholder and Regulatory Approvals

In order to implement the Share Restructuring Plan, special business was
proposed at the recent annual general and special meeting of shareholders held
on September 17, 2013. Shareholders approved an alteration of the Common Shares
to effect a consolidation of the Common Shares, on the basis proposed, with an
immediate stock split of such shares thereafter to meet the minimum distribution
requirements of the Exchange. 


The Share Restructuring Plan is subject to the approval of the Exchange. No
assurance can be given that the Shareholder Restructuring Plan will be approved
by the Exchange on the terms proposed or at all.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. 


This news release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral
recovery processes, etc. Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
statements.


We seek safe harbour.

Shares Outstanding: 57,785,150

FOR FURTHER INFORMATION PLEASE CONTACT: 
Hornby Bay Mineral Exploration Ltd.
Maurice Colson
President and CEO
(416) 727-3966

Hornby Bay Mineral Explo... (TSXV:HBE)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Hornby Bay Mineral Explo... (TSXV:HBE)
Historical Stock Chart
Von Jun 2023 bis Jun 2024