Glass Earth proposes consolidation of shares

Glass Earth Gold is looking to consolidate its number of shares on issue, by swapping 10 old shares for one new share.

The proposal would reduce the number of ordinary shares on issue from 105.66 million to 10.56 million.

Craigs Investment Partners broker Chris Timms said Glass Earth's capital raisings over the years had diluted its share value and the price was ''languishing'' around 1c-2c.

By consolidating the number of shares on issue, the price could rise to double figures and may be more attractive to some investors.

From a year-high of 48c last October, Glass Earth's shares had steadily declined to trade around 2c yesterday, following the announcement.

Glass Earth had raised and spent about $40 million, mostly from the Toronto stock exchange, during the past almost eight years, to explore for gold, mainly around Otago.

A fortnight ago it pulled out of its Otago operations, having sold its boutique alluvial (loose) gold operations around the wider Maniototo for $1.75 million.

 It is concentrating on exploration targets in the Hauraki region of the central North Island, some with joint venture partners.

The share consolidation proposal must be passed by shareholders at a special general meeting on October 4, and also the Toronto stock exchange.

simon.hartley@odt.co.nz

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