Net assets $250,000 after complicated series of transactions
Savoy Equities Ltd’s shareholders approved a resolution at the annual meeting on Friday to issue up to 25 million redeemable preference shares, as part of agreements with various shareholders to restructure the company’s remaining debt.
To preserve existing shareholders’ positions and simplify future transactions for Savoy Equities, the company will issue all the shares in Savoy Properties Ltd to Savoy Equities’ shareholders, pro rata.
Savoy Equities also proposes a renounceable 1:1 cash issue at 0.5c/share, to raise up to $291,690. The rights won’t be quoted on the stock exchange, and any shortfall may be allocated by the directors.
The company said that after various transactions, including forgiving of debt, net assets would be $250,000.