The company is proposing a share consolidation that will be put to a vote on June 21.
The deal would convert all Class "B" Series 2 preference shares into common shares of the company, at a conversion rate of 156.667 common shares per Preferred Share.
Additionally, all issued and outstanding common shares will be consolidated on a 250,000-to-1 basis. Common shareholders with less than one post-consolidation common share will be paid $0.060 in cash per pre-consolidation share, a 33-per-cent market premium.
The company lost $840,000 in fiscal 2011.
"Due to the ongoing cost of being a public company, and the severe competitive disadvantage that the company faces as a result of the information it provides its much larger competitors through its disclosure record, the directors have determined that it is in the best interest of the company to cease to be a reporting issuer," OSI Geospatial stated in a press release.
The company's goal is to decrease shareholders to 50 in Canada, with no more than 15 in any one area.
Shareholders of the restructured OSI Geospatial would be SDS Capital Group SPC, Ltd., North Sound Capital LLC, and CEO Ken Kirkpatrick, according to a media report.
OSI Geospatial's products and services enable customers to integrate and visualize live data with any combination of sensor data, imagery, maps and charts. Its systems and software are used by military, government and commercial customers around the world.
The Vancouver-based firm has seven employees in the national capital, according to Ottawa Technology magazine.
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