The board of Polaris 5BI has proposed to reduce its share capital by $398.3 million to reflect accumulated losses incurred from a series of impairments, allowances and operational losses.
Polaris intends to cancel the share capital equivalent to its losses, with the credit arising from the cancellation of share capital used towards writing off the accumulated losses that amounts to $398,256,000 as at Dec 31, 2023.
As at April 15, Polaris has an issued and paid-up share capital, excluding treasury shares, of $402.7 million, with a total share base of just over 17 billion ordinary shares.
The capital reduction, which would require approval from shareholders at an EGM to be called, can also help facilitate future equity-related fund-raising exercises to recapitalise its balance sheet.
Shares in Polaris closed unchanged at 0.1 cents on April 15.
