September 26, 2017 – Elkhart, Indiana – TekModo Industries Inc. (“TekModo” or the “Company”) (TSXV:TEK) announces that the TSX Venture Exchange has approved a share consolidation of the outstanding share capital of the Company on the basis of four (4) pre-consolidation common shares for one (1) new post-consolidation common share (the “Consolidation”). The Consolidation will be effective at the open of the market on September 28, 2017. The Company’s name and trading symbol will remain unchanged.
After the Consolidation, the Company will have approximately 29 million common shares issued and outstanding and Class B Exchangeable shares of TekModo Holdings Inc. exchangeable into approximately 3 million common shares of the Company. Approximately 68 million warrants granted in connection with the recent rights offering will be consolidated into 17 million warrants exercisable at a price of $0.25. An additional approximate 10 million warrants and stock options will be consolidated into approximately 2.5 million warrants and stock options exercisable at prices ranging from $1.50 to $4.72.
Registered shareholders will receive a letter of transmittal from the Company’s transfer agent, TSX Trust Company, providing instructions on how to exchange their share certificates representing pre-Consolidation common shares for new share certificates or Direct Registration System advice statement (DRS) representing post-Consolidation common shares to which they are entitled as a result of the Consolidation. No action is required by non-registered shareholders (shareholders who hold their common shares through an intermediary) to effect the Consolidation.
On Behalf of the Board of TekModo Industries Inc.
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Neither TSX Venture Exchange nor it 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 release.
Cautionary Notes Regarding Forward-looking Statements
Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effective date of the Consolidation; the number of common shares of the Company and the number of Class B exchangeable shares of TekModo Holdings Inc. issued and outstanding post-Consolidation; the consolidation of the stock options and warrants of the Company; and the receipt of a letter of transmittal by shareholders. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “will”, “will be”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the estimates of management and information provided by the Company’s transfer agent and by the TSX Venture Exchange as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the actions of the Company’s transfer agent and/or the TSX Venture Exchange, and receipt of all necessary regulatory approvals. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company will not update any forward-looking statements or forward-looking information that is incorporated by reference herein, except as required by applicable securities laws