Quote:
Share consolidation planned by Glass Earth
Simon Hartley — 11 September 2013
New Zealand gold explorer Glass Earth Gold Ltd (TSX-V & NZAX: GEL) is looking to consolidate its number of shares on issue, in a swap of 10 old shares for one new share.
The proposal would see the present number of ordinary shares on issue change from 105.66 million to 10.56 M.
Craigs Investment Partners broker Peter McIntyre said Glass Earth's numerous capital raisings over the years had diluted its share value, with the price “languishing” around 1c-2c.
By consolidating the number of shares on issue, the price could potentially rise to double figures and may be more attractive to some investors.
From a year-high of 48c last October, Glass Earth's shares had steadily declined to trade around 2c yesterday, following the announcement.
Glass Earth had raised and spent about $40 M - generally from the Toronto Stock Exchange - during the past almost eight years, to explore for gold, on both the North and South islands.
A fortnight ago Glass Earth pulled out of its Otago operations, having sold its boutique alluvial gold operations around the wider Maniototo for $1.75 M, and is concentrating exploration targets in the Hauraki region of the central North Island, including with joint venture partners.
The share consolidation proposal must be passed by shareholders at a special general meeting on October 4, and also by the TSX, which is its principle listing.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.