ISOTeam has proposed a capital reduction of $20 million, reduced from its previous proposed capital reduction of $25 million as per its May 27 announcement.
The lowered reduction comes after the group’s financial performance for FY2024 ended June 30 improved with lower accumulated losses.
As such, ISOTeam’s share capital, after the reduction, will be $34.3 million from $54.3 million.
In FY2024, the group reported earnings of $6.6 million, 476.8% higher y-o-y compared to earnings of $1.1 million in the year before. The group’s accumulated losses as at June 30 stood at $9.6 million, marking an improvement from $18.5 million as at June 30, 2023.
Through the capital reduction exercise, the group hopes to “rationalise” its balance sheet, to better reflect the underlying value of its assets and financial position.
The group adds that the capital reduction would also facilitate future equity-related fund-raising exercises to recapitalise and “strengthen the balance sheet” of ISOTeam.
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The group will seek its shareholders’ approval at an extraordinary general meeting (EGM) to be convened.
Shares in ISOTeam closed at 0.4 cents lower or down 6.67% at 5.6 cents on Sept 10.
