Business
Proposed reorg of share capit
Proposed reorg of share capit.
About this update from Valirx Plc
[{"type":"text","content":"\n RNS Number : 6623J ValiRx PLC 01 April 2010 \n\nValiRx plc\n \nProposed reorganisation of share capital and General Meeting\n \nThe Company announces that it has today posted a circular to Shareholders convening a General Meeting of the Company to be held at 2.30 pm on 21 April 2010 at which the Directors are seeking to effect the sub-division and reclassification of the Existing Ordinary Shares. A resolution will also be proposed to adopt new articles of association to reflect the implementation of the remaining provisions of the Companies Act 2006 in October 2009. A summary of the announcement made by the Company on 1 April 2010 relating to the issue of equity and directors' shareholdings was enclosed with the Circular. A copy of the Circular and the accompanying summary document will be available on the Company's website www.valirx.com.\n \nProposed Reorganisation\nAs previously announced, the Company continues to develop its operations which are focused on creating new markets for the very early detection of cancer so as to be able to offer significantly improved treatments. Until its operations are revenue generating to a sufficient level, the Company is dependent on the availability of grants to fund its operating subsidiaries, its ability to raise additional capital through the issue of further equity and the successful recovery of contractual sums due to be paid. Until grants are received and contractual sums due are recovered, the Company is dependent on its ability to raise additional capital through the issue of equity. \n \nThe Directors believe that additional funds will be required for the further development of the business and, as announced earlier today, intend to raise additional capital by a placing of New Ordinary Shares immediately following approval of the Proposed Reorganisation (the \"Placing\"). Under the provisions of the Companies Act 2006, the Company may not allot shares at a discount to their nominal value. The Existing Ordinary Shares have recently been trading at a price which is around or below the nominal value of 1p per share. Accordingly, the Directors are proposing a reorganisation of the Company's share capital, approval of which will provide the Directors with greater flexibility to raise finance through the issue of additional ordinary share capital...