MENA Hydrocarbons Inc. (MNH.V: Quote) announced in light of working capital deficiency, that the Board of Directors has initiated a process to identify, examine and consider strategic alternatives with the view to enhancing shareholder value.
The company noted that strategic alternatives may include, but are not limited to, sale of the corporation, merger or other business combination, recapitalization, sale of all or a portion of the Company's assets, or any combination thereof, continued execution as its business plan, among all other alternatives.
At this time, the Board of Directors has decided not to establish a special committee or retain a financial advisor to assist the Board of Directors with this process but may revisit making such appointments in the future depending on the circumstances at the time, the company said.
Previously, the company said it had a working capital deficiency of about $7.2 million. As disclosed on May 30, 2012, the Company's limited cash resources and liquidity creates a material uncertainty about the Company's ability to operate as a going concern in the near term.
The company also announced that the Board of Directors proposes to consolidate the issued and outstanding common shares of the Company, with the final consolidation ratio to be determined at a later date and prior to sending the Company's notice of meeting and information circular for the shareholder meeting to consider and approve the consolidation.
The company stated that its Board has called a shareholder meeting for July 25, 2012 to approve, among things, the election of directors, appointment of auditors, share consolidation, and change of name of the Company.
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by RTT Staff Writer
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