Iconic Labs has put forward a proposal at its annual meeting on Aug. 25 for a share consolidation on a 10,000 for 1 basis. The aim is to enhance the marketability of the company’s shares.
Currently, the media and technology firm has a total of 46.31 billion shares in issue, but its market capitalization stands at around £2 million ($2.5 million) as of Friday.
If approved by shareholders, the consolidation will result in 4.63 million ordinary shares in issue. Trading in the consolidated shares is anticipated to commence on Aug. 28.
The key benefit of the consolidation is the creation of a higher price per share. Iconic Labs believes this will attract a broader range of investors to the company and its shares.
During the consolidation process, no shareholder will receive a fraction of a new ordinary share. Instead, their entitlement will be rounded down to the nearest whole number of new ordinary shares. Any remaining fractional entitlements will be sold on behalf of and for the benefit of the company.
As of 1530 GMT, shares were down 25%.
