As foreshadowed in our recent article Ivanhoe Energy (NASDAQ:IVAN) has proposed yet another reverse split in order to comply with NASDAQ listing rules to be approved in a special shareholder meeting on August 13. The intended consolidation ratio is not mentioned in the news release, but a range of 5:1 to 7:1 is mentioned in the Notice of Special Meeting of Shareholders, available from SEDAR, to be approved by the board at the meeting.
This proposed reverse split follows on from another 3:1 share consolidation in April 2013, also triggered by NASDAQ listing requirements. The company notes that "successful execution of a business opportunity resulting in a material appreciation of the market price" would also permit Ivanhoe Energy to regain compliance with listing rules; however, "there is no assurance that any such alternatives will be available in a timely manner".
In a second news release the company has confirmed that it "is not aware of any specific factors, other than what has been previously disclosed in its public filings or news releases, which would result in the recent decrease in the share price." No concrete project updates were offered, but investors were assured that Ivanhoe Energy continues to advance its projects, including a "keen focus" on commercialization of the HTL technology. The company also acknowledged funding needs. Ivanhoe Energy promised further announcements on all fronts over coming weeks and months.
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