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Klevo Rewards Limited (ASX:KLV) has announced a proposed 10-for-1 security consolidation, subject to shareholder approval at the general meeting scheduled for 21 August 2026. This consolidation will affect the company’s ordinary fully paid shares and multiple option series, reducing the total ordinary shares outstanding from approximately 1.54 billion to about 154.5 million. The capital restructure aims to simplify Klevo Rewards’ capital base, with trading on a deferred settlement basis commencing 25 August 2026 and normal trading resuming on 3 September 2026.
Key Highlights
- Klevo Rewards Limited (KLV) plans a 10-for-1 consolidation across all share classes and option series.
- Shareholder approval will be sought at the general meeting on 21 August 2026.
- Ordinary shares will decrease from 1,544,964,965 to 154,496,497 post-consolidation.
- Trading in consolidated securities begins on a deferred settlement basis from 25 August 2026, with normal settlement restarting on 3 September 2026.
- Five option series will also be consolidated proportionally, with exercise prices adjusted accordingly.
Details of the 10-for-1 Share Consolidation
Klevo Rewards Limited is undertaking a comprehensive security consolidation on a 10-for-1 basis, consolidating every 10 pre-consolidation securities into one post-consolidation security. This will significantly reduce the number of securities issued across the company’s ordinary shares and outstanding option series.
The consolidation covers ordinary fully paid shares and five distinct option series. Fractions of 0.5 or greater will be rounded up during the process. This restructuring is designed to streamline the capital structure while preserving proportional ownership for shareholders. The company has not disclosed specific strategic reasons for the consolidation in its announcement.
Reduction of Ordinary Shares from 1.54 Billion to 154.5 Million
Before consolidation, Klevo Rewards had 1,544,964,965 ordinary fully paid shares on issue. After the 10-for-1 consolidation, this will reduce to 154,496,497 shares. This substantial decrease will simplify the company’s share capital and reduce the number of securities trading on the ASX under the ticker KLV.
Shareholders will experience a proportional reduction in holdings; for example, a shareholder with 1,000 shares will hold 100 shares post-consolidation. The company has not provided details on the rationale behind the 10-for-1 ratio or potential impacts on liquidity and market perception.
Consolidation of Five Option Series and Exercise Price Adjustments
In addition to ordinary shares, five option series will be consolidated on the same 10-for-1 basis with corresponding exercise price adjustments. The KLVAAE option expiring 27 February 2027 will reduce from 92,157,898 to 9,215,790 options, with the exercise price increasing from $0.0351 to $0.3510. The KLVAAB option expiring 19 September 2026 will decrease from 100,000,000 to 10,000,000 options, with the exercise price adjusted from $0.05 to $0.50.
The KLVAAC option expiring 19 September 2027 will reduce from 100,000,000 to 10,000,000 options, with exercise price rising from $0.10 to $1.00. The KLVAAD option expiring 20 October 2027 will decline from 16,000,000 to 1,600,000 options, with exercise price adjusted from $0.0125 to $0.1250. The KLVAZ unquoted option series expiring 25 August 2026 will reduce from 10,000,000 to 1,000,000 options, with exercise price increasing from $0.0998 to $0.9980. These adjustments maintain the economic value of options following consolidation.
Shareholder Approval Required at 21 August 2026 Meeting
The consolidation is contingent on shareholder approval, which will be sought at the general meeting on 21 August 2026. Approval is required under section 254H of the Corporations Act and for all related purposes. As of the announcement date, 21 July 2026, shareholder approval had not yet been obtained.
This approval is a critical step before the consolidation can proceed. The company has not disclosed the voting threshold or likelihood of approval. Investors should note the consolidation will not occur without shareholder consent.
Trading Schedule and Settlement Process Post-Consolidation
The last day to trade pre-consolidation securities is 24 August 2026. Trading of consolidated securities will begin on a deferred settlement basis on 25 August 2026. The record date to determine entitlements to consolidated securities is 26 August 2026. The company will update its share register and issue new holding statements from 27 August through 2 September 2026.
Normal T+2 settlement trading will resume on 3 September 2026, with the first settlements for both deferred and normal trades occurring on 7 September 2026. This phased approach facilitates administrative handling of the consolidation. Investors should be aware of the deferred settlement period and its implications.
Record Date and Shareholder Entitlement Process
The record date for the consolidation is 26 August 2026, when Klevo Rewards will identify shareholders eligible for consolidated securities. Shareholders holding shares on this date will receive consolidated securities proportionate to their pre-consolidation holdings.
The company will finalize register updates and distribute holding statements by 2 September 2026, confirming new holdings. Klevo Rewards will notify the ASX upon completion. Shareholders uncertain about their post-consolidation holdings should consult their updated statements.
Effective Date and Consolidation Mechanics
The consolidation’s effective date is 21 August 2026, coinciding with the shareholder meeting. Upon approval, the consolidation will take immediate effect. Pre-consolidation securities will cease trading three days after the vote.
The consolidation mathematically converts every 10 pre-consolidation securities into one post-consolidation security. Fractions of 0.5 or more will be rounded up. The company has not disclosed treatment of fractions below 0.5 or whether cash compensation will be provided for fractional entitlements.
Klevo Rewards’ Capital Structure and Business Overview
Klevo Rewards Limited (ABN 47 095 009 742) is a publicly listed company on the ASX with ordinary shares and multiple option series outstanding. The announcement does not provide details on the company’s business operations, financial performance, or strategic objectives.
The consolidation suggests a capital reorganisation potentially aimed at improving share price metrics or preparing for future corporate actions, though no explicit reasons were provided. Investors are advised to seek further information from company disclosures or investor relations.
Impact on Option Holders and Exercise Price Modifications
Option holders will receive one consolidated option for every 10 held pre-consolidation, with exercise prices multiplied by 10 to maintain value. For example, the KLVAAE option’s exercise price rises from $0.0351 to $0.3510, and the KLVAAB option’s price increases from $0.05 to $0.50.
These adjustments preserve the intrinsic value of options post-consolidation. Option holders should review their holdings and agreements to understand the impact on their investments.
ASX Listing and Continuation of Trading
Klevo Rewards’ ordinary shares and certain option series remain ASX-listed throughout the consolidation. While some option series are unquoted, the ordinary shares (KLV) and several option classes maintain quoted status.
The deferred settlement trading period from 25 August to 2 September 2026 facilitates an orderly transition. During this time, trades will be executed but settled later on 7 September 2026. Investors trading during this period should understand the settlement terms and timing.
