Electronic payment company iCash Payment Systems (ASX:ICP) will use its upcoming AGM to propose a consolidation of its issued shares, on a 10:1 basis.
In a letter to investors, the company said the company currently has over 853.4 million issued shares.
This causes a number of disadvantages, including a far lower share price for reasons other than valuation and the negative perceptions associated with this low price and fraction-of-a-cent dividends.
The company said consolidating these shares would eliminate or mitigate many of the disadvantages.
Uneven holdings will be rounded up to the nearest ten shares, and iCash has requested a freeze on certain share activities to prevent abuse of this.
Shareholders will also be asked to approve the issue of 10 million consolidated shares to raise capital, and give post facto approval to the issue of 90 million shares in November. ICP shares are today trading 2.22% lower at $0.044.
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