Lodestar Minerals Limited Announces Security Consolidation
LODESTAR MINERALS LIMITED (LSR) Share Update October 2024 Friday 25th
Lodestar Minerals Announces Security Consolidation Plan
Lodestar Minerals Limited (ASX: LSR) has announced a significant security consolidation plan, aimed at streamlining its capital structure and improving trading conditions.
Instant Summary:
- Security consolidation at a 20-to-1 ratio.
- Approval received from security holders on 29 November 2024.
- Post-consolidation trading begins on 3 December 2024.
Security Consolidation Details
Lodestar Minerals Limited has announced a security consolidation that will see its existing securities consolidated at a ratio of 20 pre-consolidation securities to 1 post-consolidation security. This move is designed to streamline the company's capital structure and improve the liquidity and trading conditions of its shares.
The consolidation affects several types of securities, including LSRORDINARY FULLY PAID shares and options expiring in 2026. The security holder approval for this consolidation was obtained on 29 November 2024, ensuring that all necessary conditions have been met for the process to proceed.
Timetable and Process
The consolidation process is set to follow a structured timetable. Trading in the post-consolidation securities will commence on a deferred settlement basis from 3 December 2024, with the record date for the consolidation set for 4 December 2024. The company will update its register and send holding statements to security holders by 11 December 2024, reflecting the changes in the number of securities held.
Normal trading on a T+2 basis is expected to start on 12 December 2024, with the first settlement of trades conducted on a deferred settlement basis occurring on 16 December 2024.
Impact on Securities
Before the consolidation, Lodestar had 3,372,328,915 ordinary fully paid shares on issue, which will be reduced to 168,616,446 post-consolidation. Similarly, the number of options expiring in 2026 will be significantly reduced, with adjustments made to their exercise prices to reflect the consolidation ratio.
This security consolidation is expected to positively impact Lodestar Minerals by enhancing the company's capital structure and potentially increasing the attractiveness of its shares to investors. The reduced number of shares could lead to improved liquidity and trading conditions, making the stock more appealing to institutional investors.
Investor Reaction:
Analysts are likely to view this consolidation as a positive step towards improving Lodestar's market position. The streamlined capital structure may attract new investors, while existing shareholders could benefit from a more stable trading environment.
Conclusion:
Investors should keep an eye on how the consolidation affects Lodestar's stock performance in the coming weeks. This strategic move could pave the way for future growth and stability in the company's market presence.