KUALA LUMPUR: Advance Information Marketing Bhd
(AIM) has proposed a share capital reduction of RM32 million to offset the company's accumulated losses.
As of Dec 31, 2024, AIM said it has an issued share capital of RM53.51 million comprising 390.22 million shares and 195.11 million outstanding warrants, which are exercisable into an equivalent number of new shares at an exercise price of eight sen.
In a Bursa Malaysia filing today, the company said the proposed share capital reduction would give rise to a credit of up to RM32 million, which will be utilised to offset the accumulated losses of AIM and any remaining balance will be credited to the retained earnings of the company.
"The proposed share capital reduction will accurately reflect the group's financial position by eliminating the accumulated losses via the cancellation of issued share capital, which is lost and unrepresented by available assets.
"The proposed share capital reduction will also enhance AIMS's ability to declare and pay dividends out of the retained earnings in the future and provide a better financial platform for future growth moving forward," it said.
AIM said the proposed capital reduction is subject to approval from shareholders at an extraordinary general meeting to be convened.
"The proposed capital reduction is expected to be completed in the first half of 2025," it added. - Bernama
