|By Marketwired .||
|January 7, 2014 02:38 PM EST||
TORONTO, ONTARIO -- (Marketwired) -- 01/07/14 -- Mooncor Oil & Gas Corp. ("Mooncor") (TSX VENTURE: MOO) announces that it has proposed a consolidation of the common shares of Mooncor (the "Common Shares").
The share consolidation proposal would authorize the board of directors of Mooncor to consolidate the Common Shares up to a ten (10) pre-consolidation shares for one (1) post-consolidation share basis (the "Consolidation"). There will be no name change in conjunction with the Consolidation.
Management and the board of directors believe that approval for the Consolidation is in the best interests of Mooncor and its shareholders. Management believes that a successful completion of the Consolidation would allow Mooncor important flexibility to amend its capital structure and attract business opportunities and is imperative in order for Mooncor to complete future financings. The Consolidation will not change a shareholder's proportionate ownership in Mooncor or the rights of holders of Common Shares. Each Common Share outstanding after the Consolidation will be entitled to one vote and will be fully paid and non-assessable.
Under the terms of the proposed Consolidation, no fractional Common Share will be issued as a result of the Consolidation, and shareholders entitled to receive less than one (1) Common Share will receive a cash payment. Shareholders receiving more than one (1) Common Share as a result of the Consolidation will receive such whole Common Share and any fractional shares will be rounded up or down to the nearest whole number. Such shareholders will not receive a cash payment. There are currently approximately 149,934,520 Common Shares issued and outstanding.
The Consolidation is subject to approval by the TSX Venture Exchange and the shareholders of Mooncor. A special shareholders' meeting has been called for January 29, 2014 to consider the Consolidation.
Following completion of the proposed Consolidation, Mooncor will have a total of 14,993,452 Common Shares issued and outstanding, subject to rounding.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Mooncor believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Mooncor disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
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.
Mooncor Oil & Gas Corp.
Chief Executive Officer