TORONTO, ONTARIO--(Marketwired - Aug. 12, 2014) - Nitinat Minerals Corporation ("Nitinat" or the "Corporation") (TSX VENTURE:NZZ) is pleased to announce that it has completed the consolidation of its issued and outstanding common shares on a ten (10) for one (1) basis. The consolidation was approved by the shareholders of the Corporation at the annual and special shareholders meeting held on June 17, 2014.
As a result of the consolidation, the issued and outstanding capitalization of the Corporation was consolidated from 50,162,323 common shares to 5,016,232 common shares. The number of outstanding stock options and warrants of the Corporation will similarly be adjusted on the same basis as the common shares, and the exercise prices adjusted accordingly. The Corporation will not be changing its name as a result of the consolidation and will continue to trade under its current name.
Pursuant to the rules of the TSX Venture Exchange ("TSXV"), TSXV listed issuers may not issue shares at a price lower than $0.05 per share. As the share price of the Corporation has been below $0.05 per share due, management believes, to a sustained downturn across the board in the mineral exploration sector, it is management's view that the Consolidation was in the best interest of the Corporation. As a result of the consolidation, the Corporation is now in a better position to seek financing to continue its operations, and to convince creditors to convert their outstanding debt to shares of the Corporation.
The Consolidation did not materially affect the percentage ownership in the Corporation by the shareholders even though such ownership is now represented by a smaller number of common shares. The consolidation proportionately reduced the number of common shares held by the shareholders.
The Corporation will commence trading on a consolidated basis on August 14, 2014 at the commencement of trading.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.