2019-0114 - Clarification - Getchell Gold Corp (GTCH)
January 17, 2019
Further to Bulletin 2019-0102, CSE is providing further clarification on the Getchell Gold Corp. ("Getchell") consolidation.
As previously noted, Getchell had announced that a 1:6 consolidation had taken place, yet several deposits to CDS were made under Getchell Gold's pre-consolidation CUSIP and ISIN. The Exchange had not announced that the consolidation was effective, nor had it been processed by CDS. As a result, when trading resumed following the fundamental change, trades between December 3, 2018 and December 18, 2018 were executed and reported on a pre-consolidated basis.
Bulletin 2019-0102 further explained that CDS would correct the erroneous deposits made prior to the resumption of trading. There was no direction provided with respect to the trades, which had been executed and reported with the pre-consolidation CUSIP and ISIN. In the absence of an IIROC ruling, no adjustments should have been made for the trades between December 3 and December 18, 2018.
The Issuer has attempted to clarify, through a series of press releases, the transaction details that included a 1 for 4 consolidation of Buena Vista Gold (BVG), a name change of Wabi Exploration (Wabi) to Getchell Gold, and then a 1 for 6 consolidation of Getchell. Specifically:
- Former BVG shareholders were to receive 1 share of post-consolidated Getchell for each share of BVG (provided their BVG holdings had already been rolled back 1 for 4).
- Former Wabi shareholders would first receive new Getchell shares, then post-consolidated Getchell shares on a 1 for 6 basis.
CSE is aware that as a result of Bulletin 2019-0102, positions of certain BVG shareholders may have been incorrectly adjusted for the 1 for 6 rollback of Getchell. Bulletin 2019-0102 was intended to provide clarity to an existing situation, in which the erroneous deposits may have been made with the correct volumes (post-consolidation) under the incorrect CUSIP/ISIN (pre-consolidation). The Bulletin stated that CDS would correct positions, and it provided the new CUSIP and ISIN for trading to resume on a consolidated basis. It was not intended as direction to market participants to process the consolidation by adjusting positions.
For further information, please contact:
Mark Faulkner, VP Listings & Regulation