CWG Plc held its Extraordinary General Meeting on 30th November 2021 presented resolutions on its proposed Share Capital Restructuring.
The Chairman of the Board of the Company stated”
“That the Company be and is hereby authorized to undertake a Share Capital Restructuring exercise involving the reduction of the Company’s Share Premium Account and effected by way of Share Capital reduction process by virtue of Sections 130-136 of the Companies and Allied Matters Act 2020 (“CAMA”) on the terms and conditions stated as follows”:
- That the proposed Share Capital Restructuring will not affect the Company’s Issued Share Capital but should result in a reduction of the credit balance in the Company’s Share Premium Account, while leaving the aggregate shareholders’ funds unchanged. It would have no impact on the Company’s creditors but, pave the way for the Company’s investors to receive dividends out of the Company’s future profits.
- As at 31st December 2020, the Company carries accumulated losses of N2,498,515,000 in its Statement of Financial position, in order to address this, the entire Share Premium Account of N1,852,748,000 would be applied to reduce the Company’s accumulated losses to N645,767,000 and consequently bring the Company a step further on its pathway to positive retained earnings.
- The restructuring would lay a foundation for better performance for the Company and improve its competitiveness in its sector/industry as well as improve the potential for the Company to pay dividends to its shareholders in the near future.