Asia Bio plans par value reduction to reduce accumulated losses

by **Cals** Thu 29 Oct 2015, 00:56

Asia Bio plans par value reduction to reduce accumulated losses

By Tan Siew Mung / theedgemarkets.com | October 28, 2015 : 7:38 PM MYT

KUALA LUMPUR (Oct 28): Technology incubator [size=16]Asia Bioenergy Technologies ([You must be registered and logged in to see this image.] Valuation: 0.30, Fundamental: 0.60) Bhd (AsiaBio) plans to cancel five sen off the current par value of its shares of 10 sen each, to pare down its accumulated losses.

In a filing with Bursa Malaysia, Asia Bioenergy said the company has an issued and paid-up share capital of RM86.67 million comprising 866.71 million ordinary shares.

The proposed par value reduction would give rise to a credit of RM76.03 million in the maximum scenario, it said.

The board proposes to eliminate the audited accumulated losses of the company as at March 31, 2015 and unaudited accumulated losses of the company as at June 30, 2015 of approximately RM22.51 million and RM23.11 million respectively, via the implementation of the proposed par value reduction.

The company expects the exercise — which is subject to the relevant regulatory approvals as well as its shareholders' greenlight at an extraordinary general meeting to be convened — to be completed in the fourth quarter of this year.

Asia Bioenergy Technologies closed unchanged at 6.5 sen yesterday for a market capitalisation of RM56.33 million. Year-to-date, the stock has almost halved in price from 13 sen.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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