KWG proposes to effect a de facto share consolidation through creating a multiple/subordinate voting share structure

KWG Resources, which has about 800M outstanding common shares trading at about $0.07 per share, is proposing a s. 86 reorg under which its common shares will be replaced by subordinate voting shares (also carrying one vote per share) that are convertible into multiple voting shares on a 1-for-50 basis. Each multiple voting share carries 50 votes per share and has 50-times the entitlement of a subordinate voting share to participate in dividends and any liquidation distributions. The Circular indicates that the reason for this reorganization is to have marginable shares that would be more attractive currency in any future acquisition transaction. The Circular does not explain why they didn’t just simply consolidate the existing common shares.

Neal Armstrong. Summary of KWG Resources under Public Transactions - Other – Share Consolidation.