Europa Metals (EUZ) has announced it intends to  convene a virtual General Meeting (“GM”) to both apply best practices in-line with other companies on the LSE AIM market since its delisting from ASX and specifically support the Company’s cost cutting strategy to preserve cash resources through amending the pre-emption rights of shareholders, a share consolidation on a 500:1 basis and a share option plan to incentivise senior management.

General Meeting

Details of the GM and associated materials have been communicated to shareholders for the GM to to be held at 11.00 a.m. (UK time) on 15 July 2020 via a Virtual Meeting Facility.

Accordingly, the Directors strongly encourage all Shareholders to either lodge a directed proxy form/form of instruction or vote online prior to the Meeting or attend the Meeting virtually.

However, shareholders who can attend the virtual AGM will be able to watch, listen and submit written questions to the directors and participate in all poll votes put to the Meeting in real time.

However, we note that shareholders who intend to participate virtually must notify and register with the Company in advance of the Meeting at the contact details set out in the Notice!

Key Resolutions

Whilst there several resolutions set out for shareholder approval; they are all connected with two key objectives:

  • To align Europa’s corporate governance more closely with the LSE and AIM market; Since de-listing from ASX last year, the Board has deemed it appropriate for the Company to adopt best practices for companies listed on AIM. These measures will include a 500:1 share consolidation, to reduce the amount of shares in the market and reduce volatility, and disallow certain pre-emption rights by amending the Company’s Constitutional documents to limit the number of shares the Board can issue annually without convening a GM.
  • To support the Company’s cost cutting actions; Directors and senior management have recently taken a widely commended 20% pay cut. The Company therefore proposes to incentivise these key employees through a proposed share plan, which if approve3d, will successfully incentivises key employees whilst preserving precious cash resources.

 

Shareholder approval of certain special resolutions is therefore specifically sought to grant the Directors:

  • To grant general authority to issue Shares up to 25% of the Company's issued share capital as at the date of the Meeting for non-cash consideration purposes and, separately, to issue Shares up to a further 50% of the Company's issued share capital as at the date of the Notice of Meeting for cash consideration purposes.
  • To consolidate the number of Shares in issue on a 500 for 1 basis as it is well documented that companies with share prices significantly less than 1 pence per Share, negatively affects investor perception of the Company and amplifies volatility in its share price. Shareholders will have the same percentage interest in the Company following the Consolidation, but will hold fewer individual Shares, with each Share having a higher market value due to the total aggregate number of Shares in issue being less.
  • To approve a new share option plan and to issue Incentive Options to the Directors to reward and incentivise key personnel while further aligning the interests of management with those of Shareholders.

 

Share Price Performance

Shares in Europa Metals have been highly volatile over the past twelve months but are currently well above the levels seen 12 months ago of 0.010p at 0.0145p in trading today.