Business
Proposed Reorganisation and G
Proposed Reorganisation and G.
About this update from Valirx Plc
[{"type":"text","content":"\n RNS Number : 3845M ValiRx PLC 28 January 2009 \n \nVALIRX PLC\n\nPROPOSED REORGANISATION\nAND GENERAL MEETING\nThe Company has today announced that a General Meeting of the Company will be held at 10 a.m. on 13 February 2009 at which the Directors are proposing to effect the Proposed Reorganisation.\n\nA circular has been dispatched to Shareholders to provide them with information on, and to outline the reasons for, the Proposed Reorganisation and to explain why the Board considers it to be in the best interests of the Company and Shareholders as a whole, and why it recommends that Shareholders vote in favour of the Special Resolution to be proposed to effect the Proposed Reorganisation.\n\nBACKGROUND TO AND REASONS FOR THE PROPOSED REORGANISATION\n\nIn order to finance the further development of the Company's business the Directors believe that additional funds will be required. The Company will look to raise this additional capital by a placing of New Ordinary Shares following approval of the Proposed Reorganisation. \n\nThe current market price of the Company's Existing Ordinary Shares is less than the nominal value. The Company cannot issue new shares at less than the nominal value so in order to raise additional funds, the Company needs to reorganise its share capital to reduce the nominal value of its ordinary shares.\n\nSubject to approval by the Shareholders at the General Meeting, the Directors propose to subdivide each issued Existing Ordinary Share into one New Ordinary Share and one Deferred Share and sub-divide each of the unissued Existing Ordinary Shares into six New Ordinary Shares. Immediately following the Proposed Reorganisation, the total number of New Ordinary Shares in issue will be unchanged and each existing Shareholder will continue to hold one New Ordinary Share in place of each Existing Ordinary Share. Existing certificates representing the Existing Ordinary Shares will remain valid for the New Ordinary Shares. No share certificates will be issued for the Deferred Shares.\n\nFollowing the Proposed Reorganisation, and assuming no further Existing Ordinary Shares are issued between today and the Proposed Reorganisation becoming effective, the issued share capital will...