4th May 2018 11:57
LONDON (Alliance News) - Oxford BioMedica PLC said Friday it is proposing reducing the issued share capital of the company by a factor of 50 through a share capital consolidation.
On Tuesday, Oxford BioMedica had 3.28 billion shares in issue with a price at the close of business that day of 12.04 pence each. The company feel this is a "significant number of shares for a company with a market capitalisation of about GBP395 million."
The gene and cell therapy company have outlined the following steps should the consolidation get shareholder approval: a subscription of 7 new shares by the company secretary so the share issue is exactly divisible by 50; a consolidation of every 50 existing shares into one new consolidated share; and the sale of all fractional entitlements.
The gene and cell therapy company believe the consolidation "to be in the best interests" of the company and its shareholders. It is hoping the consolidation will "improve market liquidity" by reducing the "volatility" and "spread trading activity."
Oxford BioMedica stressed that all existing shareholdings in the company will "remain relatively unchanged".
Shares in Oxford BioMedica were down 0.3% at 12.48 pence on Friday.
Related Shares:
Oxford Biomedica