Canada House Wellness (CSE: CHV) filed its annual management information circular last night, setting its annual shareholders meeting to December 19, 2019. While it included the standard re-election of directors and auditors for the year, Canada House Wellness also proposed a share consolidation on the basis of one post split share for every 25 pre-split shares.
While the reverse split was not announced via news release by Canada House Wellness, it appears the market has caught wind of the potential consolidation. The equity is currently trading down 14.29% during regular market hours with no other material change to the equity being announced today.
The consolidation ratio itself has not been set in stone, with the proposed text stating that the split would occur “on the basis of one post-consolidation share for every twenty-five (25) pre-consolidation shares or such lesser consolidation ratio as the directors may approve.”
Based on the outstanding share count of 250,401,972 as of November 5, this consolidation would leave the issuer with approximately 10,016,079 shares outstanding after taking effect. The consolidation is expected to occur “as soon as reasonably practical following the [shareholders] meeting.”
Canada House Wellness’ board of directors believes that the consolidation is in the best interests of the company to improve the share structure of the issuer.
Canada House Wellness last traded at $0.03 on the Canadian Securities Exchange.
Information for this briefing was found via Sedar and Canada House Wellness. The author has no securities or affiliations related to Canada House Wellness. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
