Vancouver, British Columbia -- Artha Resources Corporation ("Artha" or the "Company") (TSX.V: AHC) announces a proposed consolidation of its issued and outstanding common share capital on the basis of one (1) new common share for every ten (10) existing common shares (the "Consolidation"). Artha currently has 73,179,272 common shares issued and outstanding and, after the Consolidation there will be approximately 7,317,927 common shares issued and outstanding. The Company's board of directors believes that the Consolidation is in the best interests of the Company's shareholders and will maximize shareholder value.
If approved by the TSX Venture Exchange (the "Exchange"), the consolidation will be effective on or about January 30, 2015, the Company's pre-Consolidation common shares will be delisted and the post-Consolidation common shares will commence trading. The Company's trading symbol, AHC, will remain unchanged.
No fractional post-Consolidation common shares will be issued pursuant to the Consolidation. All fractional shares resulting from the Consolidation will be rounded down to the nearest whole number and no cash consideration will be paid in respect of fractional shares. The exercise price and the number of common shares issuable under any of the Company's outstanding warrants or stock options will be proportionately adjusted upon the Consolidation.
A letter of transmittal will be mailed to registered shareholders of the Company, to be used by registered shareholders to exchange their current share certificates for certificates representing the consolidated number of shares in the capital of the Company. No action is required by non-registered shareholders, who hold securities of the Company through an intermediary, to effect the consolidation of their beneficially held securities.
The Company is currently engaged in a strategic review of its operations and business, with the goal of attracting strategic partners for the re-capitalization and restructuring of the Company. Upon the completion of the Consolidation, the Company intends to enter into negotiations with various creditors for the settlement of outstanding debt with shares, subject to Exchange approval.
The Company does not intend to comment further regarding the evaluation of strategic alternatives, unless a specific transaction or process is concluded, or it otherwise deems further disclosure is appropriate or required. There can be no assurance that this review will result in the Company pursuing any transaction or that a transaction, if pursued, will be completed.
On Behalf of the Board of Directors,
For Information Contact:
Todd McMurray, President, Director
Neither 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 news release.
Certain statements contained in this news release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, statements (express or implied) contained herein regarding share consolidations, debt settlements and review of various strategic alternatives should all be viewed as forward-looking statements.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. There can be no assurance that this review will result in the Company pursuing any transaction or that a transaction, if pursued, will be completed. Accordingly, readers should not place undue reliance on forward-looking statements contained in this press release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and except as required by applicable securities laws, the Company undertakes no obligation to update forward-looking statements, if these beliefs, estimates and opinions prove to be inaccurate.