Jaguar Mining (TSX: JAG) this morning announced that the company will be going ahead with a previously proposed share consolidation on the basis of one common share for every ten shares currently held by shareholders. Further, the company intends to conduct a $0.08 dividend on a post-consolidated basis five days after the completion of the consolidation.
The consolidation, as per the company, was approved by an annual general and special meeting of shareholders held on June 5, 2017 – a mere three years ago. The company was provided with conditional approval from the Toronto Stock Exchange on July 17, 2020. The effective date for the ten to one reverse split is said to be August 27, 2020.
Following the completion of the reverse split, the company will see its total shares issued and outstanding fall from 723,502,108 to that of 72,530,197 on a non-diluted basis. No fractional shares will be issued in connection with the rollback. The effect of the rollback is said to “bolster the interest of the financial community in the company.”
“The declaration of a dividend and the concurrent announcement of a share consolidation represent an important milestone for Jaguar as we believe it will create greater exposure for the Company and attract an expanded and diverse group of new institutional and retail investors in the United States, Canada and abroad. The payment of this quarterly dividend also reflects the strong confidence we have in the expected future operating and financial performance of the Company and its mineral properties including the needs of our exploration team in providing for future growth.”
Jeff Kennedy, Chairman and Director
Jaguar Mining last traded at $0.65 on the TSX.
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Information for this briefing was found via Sedar and Jaguar Mining. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
