Accordingly, the board has determined to change the name of the company to "Stonehaven Exploration Ltd." and consolidate the common shares on the basis of one post-consolidation common share for every 40 pre-consolidation common shares. The changes are expected to be effected within the next few weeks.
There are currently 195,436,066 common shares issued and outstanding. Consolidation results in about 4,885,901 common shares issued and outstanding.
The board considers that the consolidation would be in the best interests of the shareholders as it could lead to increased interest by a wider audience of potential investors and would better position the company to obtain financing and pursue acquisition opportunities.
Litigation Update
In August 2013, a proposed class action lawsuit was filed in the Alberta Court of Queen's Bench against Donnybrook, Donnycreek Energy Inc. and certain of their respective directors and officers. The action contains various allegations relating to the plan of arrangement involving Donnycreek and Donnybrook completed in November 2011, the transfer of certain assets from Donnybrook to Donnycreek, a related private placement and other related transactions. As part of its strategy to bring this matter to a final resolution in an expeditious manner, the company intends to agree to certify the lawsuit as a class proceeding and to proceed directly to trial rather than attempting to determine the matter on a summary basis. The company firmly believes that the allegations in the class action are without merit and the company will be vigorously defending the lawsuit.
The Company currently has no debt and an estimated net working capital position of approximately $3.3 million.
Calgary-based Donnybrook holds an interest in 21 gross sections (7.6 net sections) of petroleum and natural gas rights at Bigstone and Fir, Alberta.
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