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Parkmead Group schedules AGM

By BFN News | 04:13 PM | Friday 22 November, 2013

North Sea oil firm Parkmead Group (LON:PMG) has scheduled its AGM for 16 December - and will ask investors to vote on a share consolidation.  

The Company has made considerable progress over the past twelve to eighteen months. Net oil and gas production has grown by approximately 400 per cent and revenues have increased significantly to £4.1m (2012: £2.9m). To reinforce the trading and financial progress made by the Company during this period, the Directors believe that it would be appropriate and beneficial to both the Company and its shareholders to undertake a Share Consolidation.

  The Board has therefore decided to seek Shareholder approval at the Annual General Meeting for the Share Consolidation based on every 15 Existing Ordinary Shares being consolidated into 1 New Ordinary Share.

  The Board believes that the consolidation of share capital will result in a more appropriate number of shares in issue for a company of Parkmead's size and may also help to make the New Ordinary Shares more attractive to investors going forward.

  As at 14 November 2013, the Company had 1,036,202,278 Existing Ordinary Shares in issue. With shares of low denominations, small absolute movements in the share price can represent large percentage movements resulting in high volatility.  
The Share Consolidation is expected to assist in reducing the volatility in the Company's share price and enable a more consistent valuation of the Company.  The Board also believes that the bid/offer spread on shares priced at low absolute levels can be disproportionate to the share price and therefore to the detriment of shareholders.

  Following the Share Consolidation, Shareholders will still hold the same proportion of the Company's ordinary share capital as before the Share Consolidation. Other than a change in nominal value, the New Ordinary Shares will carry equivalent rights under the Articles of Association to the Existing Ordinary Shares.   

At 4:13pm: (LON:PMG) Parkmead Group (The) PLC share price was -0.12p at 13.88p

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