Hatcher Group (08365) issued an announcement recommending the implementation of share capital reduction. This involves cancelling each issued ordinary share of 0.24 Hong Kong dollars by payment to capital, reducing the face value of each issued share from 0.25 Hong Kong dollars to 0.01 Hong Kong dollars. After the reduction, each issued ordinary share with a face value of 0.01 Hong Kong dollars in the company's share capital will become a new ordinary share. The proceeds generated from the share capital reduction will be used to offset the cumulative losses of the company as of the effective date of the share capital reduction, thereby reducing the company's cumulative losses. Any remaining balance (if any) will be transferred to the director for use as distributable reserves in the company's distributable reserve account.
Following the effective date of the share capital reduction, each undistributed statutory but unissued ordinary share will be split into 25 new ordinary shares with a face value of 0.01 Hong Kong dollars per share.
