KUALA LUMPUR: Priceworth International Bhd
has proposed to undertake a capital reduction of RM210mil of its issued shares, which is lost and unrepresented by available assets.
In a filing with Bursa Malaysia, Priceworth said the money would be utilised to set off its accumulated losses.
“The proposed capital reduction will eliminate Priceworth’s accumulated losses via reduction and cancellation of the current issued share capital of the company to more accurately reflect the value of the underlying assets and the financial position of the company and enhance the financial profile of the group with its bankers, customers, suppliers, investors, and other stakeholders of Priceworth Group following the elimination of the accumulated losses,” it said.
As at Dec 31, 2022, the company had accumulated losses of RM441.43mil, while including its subsidiary accumulated losses totaled RM202.6mil.
Priceworth said any remaining balance from the proposed exercise would be credited to the retained earnings of the company and be used in such manner as the board deems fit.
The total issued share capital of Priceworth stood at RM441.85mil comprising 1.45 billion ordinary shares.
