FARM implements manufacturer, Zimplow Holdings says it intends to consolidate its share capital by which every four existing ordinary shares of US$0,0001 each will be consolidated into one new ordinary share of US$0,0004.
The company says its exposure to agriculture and mining at a much bigger scale would present avenues for product diversification to ensure turnover growth to US$100 million by 2015.
In a statement to shareholders released Tuesday, the company said the proposed share consolidation of the company’s issued share capital will need 75 percent of shareholders’ votes at an annual general meeting to be held on May 2.
Zimplow said the proposed consolidation of the company’s share capital “should increase competitiveness of the share price on the market and attract new potential investors.”
For the financial year to December 2013, Zimplow said its volumes declined across most of its SBUs but the group managed to report a small profit after accounting for gains accrued after they disposed on Puzey & Payne and Tassburg.
The liquidity crisis is said to have affected the company’s operations.
As a result, animal drawn implements were down 15 percent from prior year with the main reduction being recorded on export volumes.
If implemented, each holder of four ordinary shares as at May 2, will have their shares replaced with one. No change in the total value of the company issued share capital will occur.
“Because of the change in the authorised share capital of the company arising from the share consolidation, the directors are proposing an amendment to the company’s Memorandum of Articles of Association so as to align the number of authorized shares in the Memorandum of Articles of Association with that arising from share consolidation,” according to an abridged circular to shareholders by Zimplow.
It is proposed that about 17,2 million consolidated Zimplow shares of unissued share capital of the company shall be made available for the grant of options in terms of that ExSOS, subject to such ordinary shares not exceeding 10 percent of issue share capital.
Zimplow is also seeking to merge employee share ownership schemes of Zimplow and TPH.
The management is also proposing to amend its executive share ownership option scheme to incorporate former executives of Tractive Power. Zimplow acquired 57,2 percent stake in Share certificates in respect of existing ordinary shares will cease to be valid on May 13, 2014.Advertisement
The share certificates in respect of new ordinary shares will be send out on May 14 to those shareholders holding their existing ordinary shares in certificated form.