16th Oct 2013 11:36
LONDON (Alliance News) - Tern PLC said Wednesday that it was calling a general meeting to approve a share consolidation and subdivision, as well as the adoption of new articles of association, as a result of the company's low share price.
At market close Tuesday, Tern shares were trading at 0.235 pence, meaning the market value of 1,000 shares would be GBP2.35. At this value, should a shareholder sell 1,000 or fewer shares, dealing costs would swallow most of the sale price. Shareholders with 1,000 or fewer shares in the company constitute 73.4% of the total, Tern said.
The company intends to consolidate existing shares into new consolidated shares on the basis of one new share per each 1,000 existing shares. Each new consolidated share would then be sub-divided into 50 new shares.
The company also said it would adopt new articles to replace existing articles of association, subject to shareholder approval.
The investment company, which focuses on the IT sector, said that outstanding legacy issues had been resolved over the last two months which would allow directors to concentrate on building the company.
Shares in Tern were trading up 6.4% at 0.250 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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