Business
Capital Reorganisation
Capital Reorganisation.
About this update from Petards Group Plc
[{"type":"text","content":"\n \nRNS Number : 9762H Petards Group PLC 07 June 2011 \n \n\n7 June 2011\n \nPETARDS GROUP PLC\n(AIM: PEG)\n \nCapital Reorganisation\n \nPetards Group plc (\"Petards\" or \"the Company\"), the AIM quoted developer of advanced security and surveillance systems, announces that the Notice of 2011 AGM and Annual Report and Accounts for the year ended 31 December 2010 have been sent to shareholders. In addition, the Company has sent notice of a circular and notice of a general meeting convened to approve a proposed capital reorganisation. The above documents can be viewed from the Company's website, www.petards.com. \n \nBackground to and reasons for the Capital Reorganisation\n \nThe Company's share price has been below the nominal value of its Existing Ordinary Shares for some time. Company law prohibits companies from issuing new shares at less than the nominal value, therefore at present the Company is restricted as to how it can use its shares: for example, it would currently be unable to raise new share capital from investors.\n \nAt close of business on 26 May 2011, the latest practical date prior to publication of the Circular, the Company had 14,132 Shareholders of which 13,502 had shareholdings of less than 10,000 shares. These 13,502 Shareholders account for 95 per cent. of the Shareholders by number, but represent 1.6 per cent. of the total number of Existing Ordinary Shares.\n \nAt the closing bid price of 0.35 pence on 26 May 2010, the latest practical date prior to the publication of the Circular, the market value of 10,000 shares would be £35. The Directors consider that should a shareholder with less than 10,000 shares choose to sell their shares, the proceeds will be significantly reduced or even completely eliminated by the dealing costs of selling. Therefore the Directors recognise that for small Shareholders it is uneconomic for them to dispose of their shares. The Capital Reorganisation will allow certain small Shareholders to realise value for their shares free of dealing costs.\n \nAnother benefit of the Capital Reorganisation is it will allow the Company to reduce certain costs associated with maintaining a large shareholder register in particular printing, postage and registrars' costs.\n \nFor the rea...