BPH Energy Announced 1 for 10 Share Consolidation for Effective Capital Structure

3 min read | February 26, 2020 04:39 PM AEDT | By Team Kalkine Media

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BPH Energy Announced 1 for 10 Share Consolidation for Effective Capital Structure

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In a significant development, diversified player of Australia, BPH Energy Limited (ASX:BPH) has proposed to implement a 1 for 10 share consolidation subject to shareholder approval at a General Meeting of the Company to be held on 27 March 2020.

The Company announced the update just a few days after it declared debt conversion to increase the direct shareholding in Advent Energy Limited from 22.6 per cent to 22.7 per cent. The Company converted a receivable of $162,566 into about 3.25 million shares in Advent at a conversion price of $0.05 per share.

READ BPH Energy Reached Settlement with MEC Resources Limited; To Increase Shareholding in Advent

BPH Energy is the second largest shareholder in Advent, whose interests comprise an 85 per cent JV interest in the PEP11 project (Offshore Sydney Basin) held through 100 per cent owned subsidiary - Asset Energy Pty Ltd; and through its 100 per cent ownership of Onshore Energy, its Bonaparte Basin interests are 100 per cent of EP386 in Western Australia and 100 per cent of RL1 in the Northern Territory.

Key Details of Share Consolidation

BPH Energy notified that it has about 3.34 billion shares on issue currently with a market capitalisation of around $3.3 million as at close of business on 24^th February 2020. As per the Company, this is a huge number of securities to have on issue, and about 334 million shares on issue (post consolidation) will be more consistent with its peer group’s capital structures.

The Company has planned to put the resolution to shareholders of converting every ten ordinary shares held by a shareholder into one ordinary share, at its upcoming General Meeting.

Following the approval of shareholders, the number of ordinary shares and options on issue, along with the exercise price of the options will be adjusted in line with the ASX Listing Rules.

If the resolution gets passed, the share consolidation will take place as per the below schedule:

In a nutshell, the proposed share consolidation seems to be more uniform with its existing capital structure.

BPH settled the day’s trade at $0.001 on 26^th February 2020.

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