Avalon Advanced Materials (AVL.TO) shares fell 7.7% on Friday after it said it will hold a special meeting of shareholders on June 29, 2026, to seek shareholder approval for a proposed consolidation of its issued and outstanding common shares at a ratio to be determined by its board within a range of one post-consolidation common share for every 130 pre-consolidation common shares and one post-consolidation common share for every 180 pre-consolidation common shares.
The board believes that establishing a range for the share consolidation provides appropriate flexibility to account for the trading price of the common shares, market conditions, and applicable listing requirements prior to implementation. The proposed share consolidation is intended to help position the company to satisfy minimum bid price or similar needs that may apply in connection with a future listing of the common shares on a major U.S. stock exchange, it said.
"As the Company continues to advance its critical minerals portfolio, shareholder approval of the Share Consolidation would provide the Company with additional flexibility as it evaluates potential U.S. capital markets alternatives and continues to pursue the next phase of its development," said Avalon Chair of the Board Alan Ferry.
Shares of the company were last seen down $0.005 at $0.06 on the Toronto Stock Exchange.
Price: $0.06, Change: $-0.01, Percent Change: -7.69%