Easyway Group (03893) issued an announcement. The board of directors proposed to implement a share capital reduction involving the cancellation of each issued share through cancellation of each issued share...
According to the Zhitong Finance App, Easyway Group (03893) issued an announcement. The board of directors proposed implementing a share capital reduction involving reducing the face value of each issued share from HK$0.4 to HK$0.01 by cancelling the paid-up share capital of HK$0.39 per issued share. After the relevant reduction, the face value of each new issued share was HK$0.01. Proceeds arising from the reduction in share capital will be used to offset the company's accumulated deficit as of the effective date of the reduction in share capital, thereby reducing the company's accumulated deficit.
Immediately after the reduction in share capital comes into effect, each authorized but unissued share will be broken down into 40 unissued new shares with a face value of HK$0.01 per share. As of the date of this announcement, 129.6 million shares were issued and paid up or recorded as fully settled. Assuming that the paid-up share capital of HK$0.39 per issued share is cancelled through share capital reduction of HK$0.39 per issued share and the face value of each issued share is reduced from HK$0.40 to HK$0.01 per share, thus constituting new issued shares with a face value of HK$0.01 per share, the company's existing issued share capital of HK$51.84 million will be reduced by HK$51.84 million to HK$1,296,000.
Furthermore, after the share capital reduction and refinement came into effect, the trading unit for each lot of shares on the Stock Exchange was changed from 4,000 shares to 12,000 new shares. After the change in the trading unit for each lot takes effect, shareholders can return their existing shares of 4,000 shares in each lot trading unit to the Stock Transfer Office in exchange for 12,000 new shares with each lot trading unit at the expense of the company.