Silver Spruce Resources Completes Share Consolidation

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4. Silver Spruce Resources Inc. Completes Share Consolidation

10/31/2025 – 04:40 PM

HALIFAX, NS / ACCESS Newswire/ October 31, 2025 / Silver Spruce Resources Inc. (TSXV:SSE) (“Silver Spruce” or the “Company”), announced that it has completed the consolidation (the “Consolidation”) of its issued and outstanding common shares (the “Common Shares”) on the basis of one (1) post-Consolidation Common Share for every fifteen (15) pre-Consolidation Common Shares, as approved at the 2024 Annual General and Special Meeting of Shareholders, held November 5, 2024. The Consolidation has reduced the number of issued and outstanding Common Shares from 324,152,832 Common Shares to 21,610,189 Common Shares. As previously announced, no fractional Common Shares were issued in connection with the Consolidation. Where the exchange resulted in a fractional post-Consolidation Common Share representing less than 0.5 of a post-Consolidation Common Share, the holder of pre-Consolidation Common Shares was not entitled to receive one whole post-Consolidation Common Share, and where the exchange resulted in a fractional post-Consolidation Common Share representing 0.5 or more of a post-Consolidation Common Share, the holder of pre-Consolidation Common Shares received one whole post-consolidation Common Share.

The Common Shares are expected to begin trading on the TSX Venture Exchange (the “TSXV”) on a post-Consolidation basis at markets open on November 4, 2025. The Common Shares will continue to trade on the TSXV under the stock symbol “SSE” under a new CUSIP: 828229302 and new ISIN: CA8282293023. Outstanding warrants and options will be adjusted accordingly to reflect the Consolidation ratio in accordance with the terms of the respective instruments.

The Company’s transfer agent, TSX Trust Company (the “Transfer Agent”) is mailing a letter of transmittal to each registered shareholder. The letter of transmittal contains instructions on how to surrender to the Transfer Agent the certificate(s) representing the pre-Consolidation Common Shares. The Transfer Agent will send to each registered shareholder who follows the instructions provided in the letter of transmittal a new share certificate representing the number of post-Consolidation Common Shares to which the shareholder is entitled or, alternatively, a DRS Advice/Statement representing the number of post-Consolidation Common Shares the shareholder is entitled following the Consolidation. No action is required by beneficial shareholders of the Company to receive post-Consolidation Common Shares in connection with the Consolidation. Beneficial shareholders who hold their pre-Consolidation Common Shares through intermediaries (e.g., a broker, bank, trust company investment dealer or other financial institution) and who have questions regarding how their Common Shares will be processed in connection with the Consolidation should contact their intermediaries. Additional copies of the letter of transmittal can be obtained from the Transfer Agent by calling 1-800-387-0825 or by emailing [email protected].

Further details regarding the Consolidation are contained in the Company’s management information circular dated September 23, 2024, which is available on SEDAR+ at www.sedarplus.ca under the Company’s profile.

Silver Spruce Resources Inc. (TSXV:SSEBF) has executed a 1-for-15 share consolidation, effective as of October 31, 2025, reducing the outstanding share count from 324,152,832 to 21,610,189. Trading on a post-consolidation basis is scheduled to begin on the TSX Venture Exchange (TSXV) on November 4, 2025, under the new CUSIP: 828229302 and ISIN: CA8282293023.

This move, approved at the 2024 annual meeting, aims to increase the company’s share price, potentially making it more attractive to a broader range of investors and improving its standing on the TSXV. While consolidation reduces the number of shares, it proportionally increases the price per share. This can sometimes be perceived positively by the market. However, a reverse stock split can also signal underlying financial difficulties, prompting investors to scrutinize the company’s fundamentals closely. The decision to consolidate often reflects a strategic effort to meet exchange listing requirements or to enhance the perceived value of the stock.

The company has addressed the issue of fractional shares, clarifying that no fractional shares will be issued. Holders with fractions of 0.5 or greater will receive one whole share, while those with less than 0.5 will not receive a share. Furthermore, outstanding warrants and options will also be adjusted at the same 1:15 ratio, influencing the economics of exercising these instruments.

Registered shareholders will receive instructions from TSX Trust Company regarding the exchange of their old share certificates for new ones. Beneficial shareholders holding shares through intermediaries are advised to contact their brokers for guidance. The critical question is whether this consolidation will successfully reposition Silver Spruce Resources for future growth and investor confidence, or if it simply masks deeper challenges within the company.