Conico Ltd Cuts Shares by 87.5%, Lifts Option Exercise Price to AUD 2.08

Consolidation Details and Timeline

Conico Ltd (ASX, CNJ), a player in the mining exploration and development sector, has formally announced a security consolidation that will reshape its capital structure. The consolidation will see every eight existing ordinary shares and options consolidated into one new security. This move, approved by shareholders, is scheduled to take effect on 1 December 2025, with trading in the consolidated securities commencing on a deferred settlement basis from 3 December.

The consolidation affects both ordinary fully paid shares and options expiring on 31 December 2026. The number of ordinary shares on issue will reduce from approximately 272 million to just over 34 million, while options will decrease from around 28 million to 3.5 million. This significant reduction in the number of securities aims to streamline the company's capital base.

Impact on Option Exercise Price

Alongside the consolidation, the exercise price of the options will adjust upward from AUD 0.26 to AUD 2.08. This adjustment reflects the consolidation ratio and maintains the economic value of the options for holders. The recalibrated exercise price will come into effect concurrently with the consolidation, ensuring option holders are aligned with the new capital structure.

Trading and Settlement Schedule

Following the consolidation, trading on a deferred settlement basis will begin on 3 December 2025. The record date for the consolidation is set for 4 December, with the company updating its register and issuing new holding statements to security holders by 11 December. Normal trading with standard T+2 settlement will resume on 12 December, with the first settlement of trades occurring on 16 December.

This timetable ensures a smooth transition for investors and the market, minimizing disruption while reflecting the company's updated capital structure. The consolidation is expected to provide a more manageable share count and potentially improve liquidity and market perception.

Strategic Considerations

While the announcement does not explicitly state the strategic rationale behind the consolidation, such moves are often undertaken to enhance share price attractiveness, reduce volatility, and align the capital structure with the company's growth ambitions. For Conico Ltd, operating in the mining exploration space, this could signal a preparation for future capital raising or a repositioning ahead of project developments.

Investors will be watching closely to see how the market responds once normal trading resumes and whether the consolidation translates into improved trading dynamics or valuation adjustments.