Tree Island Steel (TSX:TSL, StockForum), a Vancouver-based firm engaged in the production of wire and wire products for industrial, residential and commercial construction, announced today that the company intended to consolidate its common shares to half of its current level.
According to the news release, for every two pre-consolidation shares held, the shareholder is entitled to one post-consolidation share with the transaction still subject to regulatory and shareholder approval.
The transaction is expected to reduce the current 60.69 million outstanding shares to 30.34 million outstanding shares with no material effect on the shareholder's percentage of ownership in the company.
The release then added, “There are currently 4,575,000 common share purchase warrants outstanding, each exercisable for one common share at an exercise price of $0.57. Pursuant to the terms of the warrants, after giving effect to the Share Consolidation, the number of warrants outstanding will be adjusted by the same basis of one post-consolidation warrant for every two pre-consolidation warrants to 2,287,500 and each warrant will be exercisable for one common share. The exercise price will also be adjusted accordingly such that the post-consolidation exercise price is $1.14.”
Tree Island Steel was in the news recently when the company announced Q4 and year-end 2013 results.
Shares dipped 1.64% on the news to $1.20 per share.
Currently there are 58.0m outstanding shares with a market cap of $69.6 million.