Multiverse Mining and Exploration Plc has initiated plan to cancel about 3.84 billion ordinary shares in a massive share reconstruction that will wipe off almost 90 per cent of the current issued shares.
Regulatory filings showed that the board of the mining and exploration company has secured approval of shareholders to reconstruct the company’s share capital. Under the plan, one ordinary share of 50 kobo each would be issued in replacement for every 10 ordinary shares of 50 kobo currently held. With this, the company’s current issued share capital of 4.262 billion ordinary shares of 50 kobo each will be reduced to 426.19 million ordinary shares of 50 kobo each.
Shareholders also approved the reduction of the company’s capital base by more than N2.52 billion to offset retained loss in the company’s audited financial statements. According to the proposal, more than N2.52 billion which had been lost as at December 31, 2018 and any such losses till the end of December 31, 2019, which are otherwise unrepresented by available assets will be used to write off retained losses.
Multiverse has also secured shareholders’ approval to raise additional equity capital from Nigerian or international investors through any or a combination of special placement, public offer, rights issue and other means of capital raising.
Market analysts said the share capital restructuring and capital raising might not be unconnected with ongoing efforts to strengthen the company after sustained losses.
External auditors to Multiverse had raised concerns that negative bottom-line and net current liabilities of the company could affect its going concern status, referring to its ability to continue operations into the foreseeable future.
Auditors had warned that there was material uncertainty on the future survival of Multiverse, noting that its ability to meet emerging financial obligations and working capital and its continuing survival depends on its bankers.
Multiverse, quoted on the Nigerian Stock Exchange (NSE) in 2008, is engaged in the business of exploring, extracting, prospecting, boring, refining, drilling for, producing, and quarry mining of stones and other extractive solid minerals, especially Lead and Zinc, into different configuration and classification.
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