Encanto Potash Corp. Announces Proposed Consolidation
Vancouver, BC – September 21, 2023. Encanto Potash Corp. (the “Company” or “Encanto”), (NEX:EPO.H), announces that it intends to consolidate its the common shares in the capital of the Company (the “Common Shares”) on the basis of five (5) pre-consolidation Common Shares for every one (1) post- consolidation Common Shares (the “Consolidation”).
The Company currently has 90,091,899 Common Shares issued and outstanding, and following the Consolidation, the Company will have approximately 18,018,379 Common Shares issued and outstanding, prior to rounding for fractional shares.
The Consolidation was approved by the board of directors of the Company (the “Board”) on August 14, 2023 in accordance with the Articles of the Company, but remains subject to the approval of the NEX board of the TSX Venture Exchange (the “Exchange”). The Company will issue a further news release upon receiving Exchange approval, announcing the effective date of the Consolidation.
Management and the Board believe that the Consolidation is in the best interests of the Company and its shareholders. Management believes that the Consolidation would allow the Company important flexibility to complete future financings and transactions. The Consolidation will not change a shareholder’s proportionate ownership in the Company or the rights of holders of the common shares. The proposed capital restructuring will allow the Company to attract new capital, which will assist the Company to meet the financial component of the listing requirements to move to the TSX-V.
On behalf of the Board of Directors
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.
Forward‐looking Statement Advisory: This release may contain forward‐looking statements. 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. Forward looking statements or information relates to, among other things, the size, timing and the completion of the Consolidations. These forward‐looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward‐ looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.