KUALA LUMPUR (Jan 10): PA Resources Bhd has proposed a corporate exercise which includes cancellation of 40 sen from each 50 sen share while it will issue up to 894.62 million rights shares to raise between RM15.75 million and RM89.46 million.
It said on Tuesday its cancellation of 40 sen from each share would reduce the share capital to a maximum of RM25.56 million comprising of 255.60 million shares.
“The total credit of up to RM102.24 million arising from the proposed share capital reduction will be utilised to offset the accumulated losses of PA Resources at the company level,” it said. It has accumulated losses of RM51.61 million as at March 31, 2011.
PA Resources also proposed a renounceable rights issue of up to 894.62 million rights shares at an indicative issue price of 10 sen per rights share on the basis of seven rights shares for every two shares held on an entitlement date to be determined later after the proposed share capital reduction.
“The proposed share capital reduction would serve to rationalise the balance sheet of PA Resources by cancellation of the share capital that is not represented by available assets,” it said.
It said on Tuesday its cancellation of 40 sen from each share would reduce the share capital to a maximum of RM25.56 million comprising of 255.60 million shares.
“The total credit of up to RM102.24 million arising from the proposed share capital reduction will be utilised to offset the accumulated losses of PA Resources at the company level,” it said. It has accumulated losses of RM51.61 million as at March 31, 2011.
PA Resources also proposed a renounceable rights issue of up to 894.62 million rights shares at an indicative issue price of 10 sen per rights share on the basis of seven rights shares for every two shares held on an entitlement date to be determined later after the proposed share capital reduction.
“The proposed share capital reduction would serve to rationalise the balance sheet of PA Resources by cancellation of the share capital that is not represented by available assets,” it said.
