Business
Proposed Sub-division of Shar
Proposed Sub-division of Shar.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n RNS Number : 2728X Zest Group PLC 11 August 2009 \n \nZest Group plc (the 'Company')\nProposed Sub-division of Share Capital\n11 August 2009\nThe Board of Zest Group plc ('Zest') announce that a General Meeting of the Company will take place at the offices of Greenhair Services Ltd at Level 5, 22 Arlington Street, SW1A 1RD on Thursday 3 September 2009 at 10.00am ('Meeting'). The purpose of the Meeting is to approve a sub-division of the Company's shares to reduce the par value of ordinary share capital, to reclassify the Company's authorised share capital, to amend the Company's articles of association and to provide the Board with the necessary authorities to allow them to issue additional ordinary share capital to raise additional working capital for the Company. \n\nSub-Division of Share Capital and Amendment of Articles of Association\nThe Directors propose that each existing ordinary share of 0.25 pence be sub-divided into one new ordinary share of 0.01 pence and one deferred share of 0.24 pence, and to amend the Company's Articles of Association to set out the rights attaching to the deferred shares.\nThe Directors believe that this action is necessary because the existing ordinary shares of the company are currently trading at a market price which is below their nominal value of 0.25 pence each, a situation exacerbated by the current macro-economic environment which has led to a general sharp decline in equity values on the stock market over the last twelve months. The Company may only lawfully issue new shares for a subscription price at or above the nominal value of these shares and so the current situation provides an effective block on the Company's ability to raise new equity funding. The Board considers that the Sub-Division would make the ordinary shares of the Company a more attractive investment proposition to potential investors and would facilitate any future fund raising that may be appropriate to the development of the Company's ongoing business. Accordingly, the board believes that is prudent to sub-divide the share capital of the Company in order to facilitate future fundraisings.\nThe number of new ordinary shares in issue following the sub-division will equal the number of existing ordinary shares currently in ...