Rio Cristal Announces Share Consolidation
August 29th, 2014
Vancouver, Canada - (August 29, 2014) Rio Cristal Resources Corporation (TSXV:RCZ) ("Rio Cristal" or the "Company") announced today that it intends to complete a consolidation (the "Consolidation") of its common shares (the "Common Shares") on the basis of (1) post-Consolidation Common Share for every six (6) pre-Consolidation Common Shares.
The Company's articles of incorporation authorize the board of directors to approve certain changes to the Company's capital structure, including the Consolidation. As such, shareholder approval is not required.
The Consolidation is subject to TSX Venture Exchange (the "TSXV") approval. The Company anticipates that its post-Consolidation Common Shares will begin trading on the TSXV in early September 2014.
Following the Consolidation, the Company will have approximately 2,876,527 Common Shares outstanding. The Company's outstanding options will be adjusted on the same basis (6:1), with proportionate adjustments being made to exercise prices.
No fractional Common Shares will be issued and no cash will be paid in lieu of fractional post-Consolidation Common Shares. The number of post-Consolidation Common Shares to be received by a shareholder will be rounded down to the nearest whole Common Share.
A letter of transmittal will be mailed to shareholders advising that: (i) the Consolidation has taken effect; and (ii) shareholders should surrender their existing share certificates (representing pre-Consolidation Common Shares) for replacement share certificates (representing post-Consolidation Common Shares). Until surrendered, each existing share certificate will be deemed, for all purposes, to represent the number of Common Shares to which the holder thereof is entitled as a result of the Consolidation.
About Rio Cristal Resources Corporation
Rio Cristal Resources Corporation is a Canadian company focused on exploration projects in Peru. The Company's shares are listed on the TSX Venture Exchange under the symbol RCZ. For further information for investors, please contact the Company via email at mgwatson[@]shaw.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "anticipates", "intends", "could", "will" or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. Examples of forward-looking information in this news release include, but are not limited to, statements with respect to TSXV approval of the Consolidation and the date the post-Consolidation Common Shares begin trading on the TSXV. For additional information on risks and uncertainties, see the Company's most recently filed MD&A, which is available on SEDAR at www.sedar.com. The risk factors identified in the Company's MD&A are not intended to represent a complete list of factors that could affect the Company. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the forward-looking information contained in this press release.