St Barbara Ltd
(ASX:SBM) says it is planning a share consolidation in a bid to make its business more appealing to international institutional investors.
The gold producer says it currently has in excess of 1.95 billion shares on issue, relatively large for a company of its size with a market cap of around $700 million.
If approved by shareholders, a six for one share consolidation will result in around 326 million shares.
The company advises that potential international investors cannot invest in stocks with share prices less that US$1, and so prevented from investing in St Barbara for as long as its shares trade at prices less than US$1.
The consolidation is expected to create a more efficient capital structure and share price for a listed company of St Barbara’s size and market capitalization.
