Graphene 3D Lab Inc. (TSX-V: GGG, OTCQB: GPHBF) has announced that there will be a reduction of the company’s outstanding shares by 7.3%. This translates into a change from 44,387,500 to 41,164,955 common shares. The cause of the share reduction is a result of the departure of co-founder Michael Gouzman who served on the company’s advisory board. The rights to the shares were contingent on Mr. Gouzman remaining on the advisory board.
The President and CEO of Graphene 3D, stated “I want to thank Professor Gouzman for his contributions and service to the company and I wish him every success in his future endeavors.”
What are the repercussion of a cancellation or reduction of shares?
More importantly what are the repercussions of the co-founder stepping down from the advisory board?