KUALA LUMPUR: XOX Bhd
has proposed to undertake a capital reduction of up to RM303mil of its issued share capital.
The mobile services provider, in a filing with Bursa Malaysia, said this would be done via the cancellation of the issued share capital which is unrepresented by available assets of up to RM303mil.
XOX said the corresponding credit arising from the proposed share capital reduction will be solely utilised to set-off against the accumulated losses of the company.
As at April 19, the issued share capital of the company is RM472.34mil comprising 5.19 billion shares.
“The proposed share capital reduction will enable the company and the group to rationalise their financial positions by reducing the accumulated losses to more appropriately reflect the value of the underlying assets and the financial position of the company and the Group.
“In addition, the reduction of accumulated losses is expected to enhance the credibility of both the company and the group with the bankers, customers, suppliers, investors and other stakeholders,” XOX said.
