KUALA LUMPUR: Green Ocean Corporation Bhd
(Gocean) has proposed to undertake a 10-into-one share reduction and as a result a capital reduction of its issued share capital of up to RM92.5 million to offset the company’s accumulated losses.
In a filing with Bursa Malaysia, it said any remaining balance will be credited into the company’s retained earnings and used as determined by the board at a later date, in accordance with relevant and applicable laws as well as the ACE Market Listing Requirements of Bursa Malaysia Securities Bhd.
"The proposed capital reduction will also enhance the company’s ability to provide a better financial platform for the group’s future growth moving forward,” it said.
The proposed capital reduction entails the reduction of the issued share capital of the company pursuant to Section 117 of the Companies Act 2016.
As at Oct 1, 2024, being the latest practicable date prior to the date of the announcement, the company has an issued share capital of RM143.49 million comprising 211.16 million ordinary shares in Gocean; and 62.14 million outstanding warrants 2020/2025 which are exercisable into 62.14 million new shares at an exercise price of RM1.00.
The proposed capital reduction is subject to the approvals being obtained from the shareholders of Gocean at an extraordinary general meeting to be convened; and any other relevant authorities or parties, if required.
Barring any unforeseen circumstances and subject to all approvals being obtained, the proposed capital reduction is expected to be completed in the first quarter of 2025.
M & A Securities has been appointed as the principal adviser to Gocean for the proposed capital reduction. - Bernama
