the company’s strategy of becoming the first modern large-scale Cambodian gold producer," he said.
A general meeting will be held in March where Emerald will seek shareholder approval for the second tranche of the placement.
However, the placement will not be the only topic on the March meeting's agenda. With so many new shares going out and diluting Emerald stock, management said it will ask shareholders to approve a 10-for-one consolidation of existing shares.
This means, essentially, shareholders will have their total shares held divided by 10. For example, if an investor held 100,000 EMR shares prior to the consolidation, once consolidated they will only hold 10,000 shares. Generally, the company's share price will rise by the consolidation amount, meaning shareholders will theoretically not lose out and the company's market cap will stay the same.
The consolidation, then, acts as a restructuring of the company's capital.
On the back of today's news, Emerald shares have dipped a slight 2.27 per cent. Still above the share placement price, shares are currently selling off for 4.3 cents each in a $131.08 million market cap.