VOLCANO SPRING suggests conducting a capital restructuring
The board of Volcano Spring International Holdings recommends a capital restructuring, including a capital reduction and a stock split. The capital reduction will decrease the nominal value of each issued share from HKD 0.25 to HKD 0.001, followed by a stock split of the unissued shares into 250 new shares with a nominal value of HKD 0.001 each. The proceeds from the reduction will be used to offset the company's accumulated losses, with the balance transferred to the distributable reserve account
According to the announcement from Volcano Spring International Holdings (01715), the board of directors recommends a proposal for a capital restructuring to be presented to shareholders, which involves:
(i) Capital reduction, whereby the paid-up capital of each issued share will be reduced by HKD 0.249, decreasing the nominal value or par value of each issued share from HKD 0.25 to HKD 0.001;
(ii) Share subdivision, whereby immediately following the effectiveness of the capital reduction, the statutory but unissued shares with a nominal value or par value of HKD 0.25 will be subdivided into 250 new shares with a nominal value or par value of HKD 0.001 each;
(iii) The proceeds arising from the capital reduction will be used to offset the accumulated losses of the company as of the effective date of the capital reduction, thereby reducing the company's accumulated losses. The remaining balance (if any) will be transferred to the company's distributable reserves, and the company may utilize the relevant amount in a manner permitted by all applicable laws and the company's articles of association as deemed appropriate by the board of directors
