VANCOUVER, British Columbia, June 27, 2022 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), announces that it will complete a consolidation (“Consolidation”) of its issued and outstanding common shares on the basis of one (1) post-consolidation common share for each two (2) pre-Consolidation common shares. Any fraction of a common share will be rounded down to the nearest whole number. As a result of the Consolidation, the outstanding common shares of the Company will be reduced to 33,588,039.
The common shares will begin trading on a consolidated basis and with a new CUSIP number on June 30, 2022.
The Company’s name and trading symbol will not change.
Letter of transmittals have been mailed to registered Shareholders and registered Shareholders will be required to deposit their share certificate(s), together with the duly completed letter of transmittal, with Odyssey Trust Company, the Company's registrar and transfer agent. Non-registered Shareholders holding common shares through an intermediary (a securities broker, dealer, bank or financial institution) should be aware that the intermediary may have different procedures for processing the Consolidation than those that will be put in place by the Company for registered Shareholders. If Shareholders hold their common shares through intermediaries and have questions in this regard, they are encouraged to contact their intermediaries.
Outstanding stock options and share purchase warrants will also be adjusted by the Consolidation ratio and the respective exercise prices of outstanding options and share purchase warrants will be adjusted accordingly.
The decision to effect the Consolidation was taken by the Board of Directors of the Company after carefully considering a number of factors, including the significant decline in the Company’s share price over the past several months, the significant decline in the market values of many other companies operating in the cannabis sector, and the related challenges companies in the sector are facing in completing financings, particularly equity financings. The Company believes that effecting the Consolidation will be beneficial to the Company in that it is expected to, among other things, provide the Company with greater flexibility in attracting potential financing.
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Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, products and future of the Company’s business, its product offerings and plans for sales and marketing, including with respect to the Company’s expectations regarding the benefits of the Consolidation. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the anticipated benefits of the Consolidation will not be realized as expected, or at all, the Company's products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
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