2nd Sep 2019 17:41
(Alliance News) - Cyber security software company Shearwater Group PLC on Monday proposed a reorganisation of its share capital in order to increase the marketability of its ordinary shares.
The company said its share capital of 2.21 billion shares is a "significant number" for a company with a market value of GBP42.6 million.
The reorganisation will consist of two stages, first every 100 shares will be consolidated into one share of 100.00 pence each, Shearwater said. Next, each consolidated share will be divided into one new share of 10.00p each and one deferred share of 90.00p apiece.
If the proposal is passed at its annual general meeting on September 25, the number of Shearwater ordinary shares will be trimmed to 22.1 million with the same amount of deferred shares also in issue.
Shearwater explained that reducing the number of shares limits its exposure to volatile trading activity, making it more attractive to investors in the UK and abroad.
Shares in the company closed 3.3% lower at 1.94 pence each in London on Monday.
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