25 March 2557- The International Engineering Company Limited or IEC to clarify the share capital reduction and capital increase to issue new shares as private placement.
According to IEC has informed the Stock Exchange of Thailand (SET) that due to the structure of changing of the business plan, as a result, the earnings from solar power projects at Lamphun and Tak have been profitable since late 2013.
Also, the solar power project in Chiang Mai and waste-to energy plant in Songkhla will be COD in April 2014, making the performance of the company has improved. Thus, the Board of Directors agreed to propose to the shareholders at the Annual General Meeting of Shareholders for the year 2014 (AGM) to reduce the share capital to offset the deficit and the devalue of the shares in the past for over one billion baht.
In the future, if the company is profitable and no loss remains, the company will be able to pay dividends to the shareholders. This is to reflect the shareholder inquired about ways to solve such problems in the previous Extraordinary General Meeting. Once the company has solved all accumulated loss, it will capable to simply raise capital from financial institutes.
Technically, the capital reduction will result in the shares of existing shareholders decreased at a rate of 8.1 per one share, for example, Mr. A common shares IEC 8,100,000 shares after the capital reduction made Mr. A shares outstanding 1,000,000 shares of the stock price. The stock price will be based on market to reflect the reduction of registered capital.
In terms of the capital increase to issue new ordinary shares to be offered to the private placement (PP) because of the reduction of capital necessary to cancel the shares that are not sold out before the process of law making stock PP was approved by shareholders at the extraordinary general meeting of the month October 2013 was also suspended. It is therefore necessary to ask the shareholders to issue new PP shares to substitute for the company's new projects.
The company will ask the shareholders to shorten the terms of the stock from the previous PP Silent Period from 2 years to 6 months instead. This is to make the PP share more attract to the major investors. At the moment, the company is discussing with the major investors.