Highlights
- MTB plans a share consolidation at a 1-for-4 ratio.
- The current share count of over 1.29 billion will reduce to approximately 324.5 million following the consolidation.
- Unlisted share options will also be consolidated at the same ratio.
Mount Burgess Mining NL (ASX:MTB) has announced plans to consolidate its share capital at a ratio of one share for every four securities held. For this proposed consolidation, the board will seek shareholder approval at the annual general meeting (AGM), scheduled for 28 November 2024.
Proposed Share Consolidation
Currently, the company has more than 1.29 billion shares on issue, and following the consolidation (if approved), this number is expected to decrease to over 324.5 million shares, subject to rounding effects.
With the consolidation, individual holdings will decrease in the same ratio as the total number of shares, ensuring that the consolidation applies equally to all shareholders. The company noted that while the consolidation will not materially change the aggregate value of each shareholding, the market price per share is expected to increase fourfold to reflect the reduced share count.
If approved at the AGM, the unlisted share options will also be consolidated at the same ratio, with the exercise price adjusted inversely to the consolidation ratio.
Indicative timetable for the consolidation –
Image source: Company update
MTB shares traded at AU$0.001 apiece on 23 October 2024.