Lifestyle Delivery Systems (CSE: LDS) shares tumbled this morning after the firm announced that it will be conducting a reverse split to lower the amount of outstanding shares at the firm. The firm did not announce a date associated with the transaction, stating that its up to the approval of the Canadian Securities Exchange.
The split will be conducted on a six for one basis, with six pre consolidation shares converting to that of one post consolidation share. This will in effect take Lifestyle Delivery Systems’ 139,465,194 outstanding shares down to 23,244,199 common shares.
In conjunction with the consolidation of shares, Lifestyle Delivery Systems will be changing its name to that of Core One Labs Inc. It is unclear what purpose the name change serves at this time.
The news of the Lifestyle Delivery Systems’ share consolidation and name change comes on the heels of a failed transaction with that of Transcanna Holdings. The arrangement was initially announced quietly over the July long weekend, however shareholders were quick to respond upon markets opening with a significant sell off of the equity of over 14%. The original transaction valued LDS at $51,660,140, providing a slight premium to shareholders at the time.
The transaction was cancelled on June 12, after the equity had fallen 29.73% to that of $0.26. Unfortunately for shareholders, the tumble hasn’t stopped. Lifestyle Delivery Systems is currently trading at $0.16 right now, down 25.58% on today’s share consolidation news as investors head for the exits.
Information for this briefing was found via Sedar and Lifestyle Delivery Systems. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
