Azincourt Energy To Conduct 2.5 To 1 Reverse Split Following Financing
Azincourt Energy (TSXV: AAZ) is evidently looking to give its share price a lift. That lift however is to come in a slightly less conventional way than through operational performance, with the company last night announcing it intends to conduct a reverse split.
The share consolidation is to be conducted at a ratio of 2.5 pre-consolidation shares for one post consolidation shares, or a 2.5 to 1 basis. On a post-consolidated basis, the company is expected to have a total of 227.0 million common shares outstanding.
The share consolidation is expected to be implemented on April 15, subject to final TSX Venture approval.
The announcement of the reverse split last night was included on the back end of a financing announcement, with the firm indicating it had raised gross proceeds of $5.1 million via the sale of flow through units at a price of $0.08 per each. Each flow through unit contained one common share and one purchase warrant with an exercise price of $0.10 per share, which is valid for two years.
Proceeds from the financing are to be used to drill test the firms East Preston and Hatchet Lake uranium projects in the Athabasca Basin of Saskatchewan.
Azincourt Energy last traded at $0.08 on the TSX Venture.
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