Vancouver, British Columbia--(Newsfile Corp. - April 30, 2021) - China Keli Electric Company Ltd. (TSXV: ZKL.H) (the "Company"), announces that effective Wednesday, May 5, 2021, the Company's common shares will be consolidated on the basis of (1) post-consolidation share for every twenty (20) pre-consolidation shares (the "Consolidation"). The Company's post-Consolidation common shares will be posted for trading on the NEX board of the TSX Venture Exchange on Wednesday, May 5, 2021 under the current symbol "ZKL.H" and new CUSIP number 168930204.
The Consolidation will result in the number of issued and outstanding common shares without par value of the Company being reduced from 90,415,223 common shares to approximately 4,520,762 common shares, and each shareholder will hold the same percentage of common shares outstanding immediately after the Consolidation as such shareholder held immediately prior to the Consolidation.
Any fractional post-Consolidation shares of the Company upon effectiveness of the Consolidation shall be converted into whole post-Consolidation shares such that each fractional common share remaining after the Consolidation that is less than 1/2 of a post-Consolidation share shall be cancelled and each fractional common share that is at least 1/2 of a post-Consolidation share shall be changed to one whole post-Consolidation share, in accordance with section 83 of the Business Corporations Act (British Columbia).
Shareholders of the Company approved the Consolidation by special resolution at the Company's annual general and special meeting held on December 30, 2020 (the "AGM"). Shareholders received, as part of the AGM materials, letters of transmittal requesting that they forward pre-Consolidation common share certificates or DRS advices to Computershare Investor Services Inc., for exchange for new share certificates or DRS advices representing common shares on a post-Consolidation basis.
Non-registered beneficial holders holding their shares through intermediaries (securities brokers, dealers, banks, financial institutions etc.) should note that such intermediaries may have specific procedures for processing the Consolidation. Shareholders holding their shares through such an intermediary and who have any questions in this regard are encouraged to contact their intermediary.
The Company also announces an update to the $200,000 bridge loan previously announced on December 2, 2020 (the "Loan"). The Loan bears interest at 2.5% per month, and was originally to mature on February 28, 2021. If the Loan was not repaid on the original maturity date, Mr. Sean Leigh Webster, the Lender of the Loan may, at his option, convert the amounts outstanding under the Loan into common shares of the Company at $0.05 per share. Proceeds of the Loan were used to bring the Company's continuous disclosure current, obtain a full revocation of the cease trade order previously outstanding against the Company, and pay the Company's outstanding accounts.
In late February 2020, Mr. Webster extended the maturity date of the Loan to April 30, 2021, and waived the option to convert the Loan into common shares. Mr. Webster has since advised the Company that he will further extend the Loan for an additional two months until June 30, 2021 to permit the Company to investigate new financing and business opportunities.
For further information, please contact:
CHINA KELI ELECTRIC COMPANY LTD.
Philip Lo, Chief Executive Officer
Tel. No.: (86) 13632 173732
Email: philip@zkl.cc
Neither the 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 press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/82457
