CALGARY, ALBERTA, May 22, 2015 – Cortex Business Solutions Inc. (TSXV: CBX) (the “Company”) announces that a consolidation of its Common Shares will be considered by its shareholders at the upcoming Annual General and Special Meeting of Shareholders (“Meeting”) on June 24, 2015 at the offices of Cortex Business Solutions Inc.
At the Meeting, shareholders will be asked to approve a special resolution approving the amendment of the Corporation’s articles to consolidate the issued and outstanding Common Shares (the “Share Consolidation”) in the capital of the Corporation on the basis of (1) post-consolidation Common Share for every (50) pre-consolidation Common Shares (the “Consolidation Ratio”), and (b) the number of post consolidation Common Shares must be a whole number of Common Shares. Subject to approval of the TSXV, the approval of the special resolution would give the Board the authority to implement the Share Consolidation or, in its sole discretion, revoke the special resolution and abandon the Share Consolidation without further approval or action or prior notice to shareholders.
The Board proposes to reduce the number of Common Shares of the Corporation as management believes that the Share Consolidation will make investing in Shares more attractive to a broader range of institutional and professional investors and other members of the investing public. Many brokerage houses and institutional investors have internal policies and practices that either prohibits them from investing in low-priced shares or which tend to discourage individual brokers from recommending lowpriced shares to their customers. Some of these policies and practices may also function to make the processing of trades in low-priced shares economically unattractive to brokers. Nevertheless, some investors may view the Share Consolidation negatively since it would reduce the number of Shares available in the public market and could potentially reduce the liquidity of and the trading market for, Company Shares.
As stated above, the Share Consolidation is intended, absent other factors, to make our shares attractive to a broader range of investors. However, other factors, such as the Company’s financial results, market conditions and the market perception of the Company’s business and general economic conditions may adversely affect the price of Shares following the Share Consolidation. As a result, there can be no assurance that the Share Consolidation, if completed, will result in the intended benefits described above. The Share Consolidation will reduce the number of shares issued and outstanding from 371,317,427 to 7,426,349.
The proposed share consolidation is subject to the approval by the shareholders of the Company and the TSX Venture Exchange.
About Cortex Business Solutions Inc.
Cortex Business Solutions Inc. is an Enterprise eProcurement solutions company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day's outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging clients’ existing business environment.
Investor Relations Contacts:
|Joel Leetzow||Sandra Fawcett (formerly Weiler)||Andrew Stewart|
|President and CEO||CFO||Director, Marketing & Investor Relations|