Direct Communications (08337) proposes to implement capital reduction for issued shares and split unissued shares

Zhitong Finance App News, Direct Telecom (08337) announced that the company proposes to implement a share capital reduction, which involves reducing the face value of each issued common share from HK$0.20 to HK$0.01 by cancelling the paid up share capital (limited to HK$0.19 per issued common share). As a result, after the reduction, the face value of each issued common share in the company's share capital will be HK$0.01 and will become a new common share. The accounts accruing from the reduction in share capital will be included in the company's share capital reduction reserve account, and the purpose (including any use to offset the company's accumulated losses) will be determined by the board of directors from time to time based on the company's financial situation and in accordance with the company law and the company's articles of association and rules.

Immediately after the share capital reduction takes effect, each authorized but unissued common share will be broken down into 20 statutory but unissued new common shares with a face value of HK$0.01 per share.