21st Aug 2014 09:43
LONDON (Alliance News) - Shares in PeerTV PLC were trading 23% lower Thursday morning after the company proposed a reorganisation of its share capital, as its share price has fallen below the nominal value of its ordinary shares, restricting its ability to issue further shares and raise funds.
PeerTV noted that it may wish to raise additional funds in the near future to drive its expansion and continue its on-going business. However, shares have been trading below their nominal value of 0.5%. It is illegal to issue new shares at a price below their nominal value under UK company law.
Shares in the company were trading 23.47% lower at 0.287 pence per share Thursday morning.
PeerTV has proposed a reorganisation to subdivide each existing share into one ordinary share of 0.05 pence each, and one subordinated share of 0.45 pence each. This would mean that each shareholder would continue to hold the same number of ordinary shares and subordinate shares, and its ordinary shares will have a lower nominal value.
The subordinated shares would carry no rights and would be of no economic value, and the holders would be entitled to a payment on return of capital or winding up of the company, said PeerTV. They will not be listed or traded on AIM.
The company has convened a general meeting on September 5 to approve the reorganisation.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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