3rd Feb 2015 18:41
LONDON (Alliance News) - Regency Mines PLC Tuesday proposed a share capital reorganisation under which each of its shares would be subdivided into one new ordinary share of 0.01 pence each and one deferred share of 0.09 pence each.
"The company's ordinary Shares of 0.1p each are currently trading on AIM at a price close to their nominal value of 0.1p per share. English company law prohibits the issue of new shares by an English company at a price below their nominal value and, accordingly, the ability of the Company to raise funds by way of the issue of further equity could potentially be inhibited," Regency Mines said.
The proposals require shareholder approval.
Regency Mines shares closed down 4.4% at 0.110 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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