Legacy Lithium announces significant share consolidation for investors

On November 29, 2024, Legacy Lithium Corp., based in Calgary, Alberta, announced the effectiveness of its share consolidation. This decision arises from a previous communication on November 22, 2024, indicating the company's plan to consolidate its shares to enhance shareholder value and streamline capital structure. Prior to the consolidation, the company had 12,875,453 issued and outstanding common shares. Post-consolidation, the number of shares is expected to decrease to 2,575,092. The consolidation will occur on the basis of one share for every five currently outstanding shares, meaning that shareholders will hold fewer shares but each at a higher value post-reorganization. Furthermore, the consolidation will not result in the issuance of fractional shares; instead, any fractional interests will be rounded up or down to the nearest whole share. This ensures that shareholders with less than five shares will not receive cash for their fractional shares but rather will be rounded appropriately, thereby simplifying the ownership structure. All registered shareholders will receive instructions regarding the required actions to facilitate this consolidation, either through a letter of transmittal or automatically in the case where they hold shares electronically. The company remains confident that this consolidation aligns with its strategic goals and will enhance the performance of its common shares in the market. Additionally, the announcement stresses that the name of the company will not change and provides specific identifiers for the post-consolidation shares, including the CUSIP and ISIN numbers, further ensuring clarity for investors moving forward. Legacy Lithium’s board of directors has made it clear that they will retain discretion over the terms and implementation of the consolidation, possibly allowing for adjustments based on market conditions. As a result, this strategic move could contribute to a more unified and robust company image as it continues to pursue its business objectives in the lithium sector.