Business
Court Approval of Capital Reduction
Court Approval of Capital Reduction.
About this update from Zinc Media Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8377X\n Zinc Media Group PLC\n 02 September 2020\n \n \n \n \n 2nd September 2020\n \n \n \n \n \n Zinc Media Group plc (\"Zinc Media\" or the \"Company\")\n \n \n \n \n \n Court Approval of Capital Reduction\n \n \n \n \n \n Further to the Extraordinary General Meeting on 12th February 2020 at which a resolution was passed for a share capital reduction of the Company (the \"Capital Reduction\"), Zinc Media Group plc, (AIM: ZIN) is pleased to announce the Capital Reduction has been approved by the Court of Session in Edinburgh. \n \n \n \n \n \n Earlier today, the application to the Court of Session was granted. In order for the Capital Reduction to become effective, the order of the Court confirming it, under section 648 of the Companies Act 2006, must be registered with the Registrar of Companies, which is expected to be completed by 4th September 2020.\n \n \n \n \n \n The Court of Session has approved:\n \n \n \n \n \n 1. The cancellation of the Deferred Shares and the D Deferred Shares for no consideration; and\n \n \n 2. The cancellation of the new B Ordinary Shares, which are to be created through the capitalisation of an amount equal to the entire balance standing to the credit of the Company's merger reserve and application of that amount in paying up in full at par new B Ordinary Shares, their issue and subsequent cancellation for no consideration; and\n \n \n 3. The cancellation of the entire balance standing to the credit of the Company's share premium account.\n \n \n \n \n \n The Capital Reduction will create realised profits that will eliminate the current deficit on the Company's retained loss account. As a result, any positive distributable reserves generated by the Company from this point should be available for the Board to use in offsetting future losses or for the purposes of paying dividends in the future, subject to the continuing satisfactory financial performance of the Group.\n \n \n \n \n \n The Capital Reduction was proposed in January 2020 as part of the wider balance restructure, with the aim of simplifying the capital structure and bolstering the Company's potential to pay dividends in the future as the business grows. Along with the share consolidation which occurred in February 2020 it is also expected...