Toronto, Ontario - Rainbow Resources Inc. (TSXV: RBW) ("Rainbow" or, the "Company") announces that as part of the agenda for its upcoming annual and special shareholder meeting to be held on November 12, 2014 (the "Meeting"), the Company is proposing a name change and a consolidation of its issued and outstanding common shares.
The Company is proposing to change its name from Rainbow Resources Inc. to Braveheart Resources Inc. The consolidation of Rainbow's issued and outstanding common shares will be implemented on the basis of up to one (1) post-consolidation share for ten (10) pre-consolidation shares.
The name change and consolidation are subject to TSX Venture Exchange as well as shareholder approval and will be considered by shareholders at the Meeting.
As of October 3, 2014 the Company had 50,047,052 common shares issued and outstanding. If approved and implemented, the consolidation will occur simultaneously for all of the Company's common shares and will affect all shareholders uniformly. Management expects that the ratio for the consolidation will be fixed and the consolidation implemented as soon as practical following the meeting. Assuming the proposed consolidation occurs at a ratio of 1:10, the Company's outstanding shares will be reduced to approximately 5,004,705 Common Shares. The consolidation will not affect any shareholder's percentage ownership interest in the Company, except to the extent that the consolidation would otherwise result in any shareholder owning a fractional share. No fractional shares will be issued, but instead if the Consolidation would otherwise result in a shareholder holding a fraction of a share, such fractional share, if less than one-half, shall be rounded down to zero and, if equal to or greater than one-half, shall be rounded up to one and added to the number of shares which the shareholder is entitled to receive.
The proposed consolidation and name change are all detailed in the Information Circular that will be made available electronically to all shareholders in connection with the Meeting at www.sedar.com and on the Company's website at www.RainbowResourcesRBW.com.
About Rainbow Resources:
Rainbow is a Canadian based junior exploration company focused on building shareholder value through aggressive exploration in a favorable and proven mining jurisdiction - the West Kootenays in southeast British Columbia (silver, gold and flake graphite). Rainbow's shares are listed on the TSX Venture Exchange under the symbol TSXV: RBW and on the OTC under the symbol RIINF.
Rainbow Resources Inc.
David W. Johnston
Rainbow on Video: http://www.rainbowresourcesrbw.com/video/
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, (more) uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information and the risks identified in the Company's continuous disclosure record. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release.