On Friday last week, Magellan Gold Corporation (Magellan), a US based mining and exploration enterprise focused on silver and gold, announced the effectiveness of a 1-for-50 reverse split of its common stock. Shares of Magellan common stock will begin trading on a split-adjusted basis on the OTCQB Marketplace at the market open today (7 January 2019).
"The completion of this reverse split marks an important step in the recapitalisation we have accomplished over the course of the last year," said W. Pierce Carson, President and CEO of Magellan.
"We believe this reverse split will increase the attractiveness of our stock to investors and ultimately facilitate the raising of additional capital to support our growth plans."
The company's ticker symbol will remain unchanged; however, a 'D' will be appended to the existing MAGE ticker symbol (MAGED) for a period of 20 business days following the effective date to signify that the reverse split has taken place. In addition, the company's common stock has been assigned a new CUSIP number (559078 209) to reflect the reverse split.
Effective as of 19 October 2017, a majority of the company's stockholders approved by written consent a proposal authorising the company's board of directors to effect a reverse split of the company's outstanding shares of common stock at a ratio of up to 1-for-50.
On 26 November 2018, the board of directors approved the reverse stock split at a 1-for-50 split ratio, which was publicly announced previously. On 3 January 2019, the Financial Industry Regulatory Authority (FINRA) informed the company that the reverse split would be effective on 7 January 2019.
As a result of the reverse split, every 50 shares of the company's pre-reverse split common stock will be consolidated automatically into one share of common stock. No cash or fractional shares will be issued in connection with the reverse split. Instead, the company will round up to the next whole share when issuing post-split shares to stockholders. The number of authorised shares of the company's common stock, the par value of the company's common stock, and rights of the company's common stockholders will not be affected by the reverse split.
Proportional adjustments will be made to shares of the company's common stock issuable upon exercise or conversion of the company's outstanding warrants and stock options in accordance with their terms.
Read the article online at: https://www.globalminingreview.com/finance-business/07012019/magellan-golds-reverse-split-of-its-common-stock-complete/