This was disclosed in a notice, which was signed by the Company Secretary, Micheal Edeko, and sent to the Nigerian Stock Exchange ( NSE ). According to the notice, Japaul intends to seek investors ’ consent to raise extra fairness capital up to N27 billion whether by direction of Right Issue, Public Offer or Private Placement .
It stated, “ We intend to seek the approval of our shareholders to increase the authorize share capital from 6 billion to 60 billion ordinary and/or Preference shares and carry out partake reconstruction.
“ The Directors be, and are hereby authorised to do all things necessity and incidental to the accomplishment and fulfillment of the above special resolutions including amending the Memorandum and Articles of Association of the caller. ”
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According to the detect, the company ’ s 15th AGM would hold at the Japaul Corporate Head position, Ikeja, Lagos on July 29th, 2020. The consolidate statement of fiscal position of the company, as of December 31, 2019, would be presented to the shareholders at the virtual meet .
What it means : If Japaul succeeds in increasing its share capital from 6 billion to 60 billion, it means bad and good news for investors. It could be bad because it represents the issue of extra shares, which dilute the rate of investors ’ existing shares .
The good newsworthiness is that extra plowshare may benefit investors in the imprint of increased returns on fairness, through capital gains, higher dividend payouts .
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Share reconstruction: Share Reconstruction otherwise known as a reversion stock cleave is a march whereby a company reduces the sum number of outstanding shares it has by cancelling out shares it does not need .
How it may affect investors: While some argue that share reconstruction does not affect the prize of investors ’ shares in a company, others insist that the exercise can turn to a nightmare for shareholders. The market may feel the fundamentals of the ship’s company is so decrepit they do not even apply any sentimental value towards the contribution reconstruction .
For case, if Japaul share price changed from 23kobo, as at June 19, 2020, to 46kobo after a scheme of Share Reconstruction, the market may calm feel the value the party is worthless and price it less. Therefore the company can drop below 46kobo or lower than the 23kobo it was trading before the reversion rip .
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meanwhile, the results of the company for the fiscal year ended in December 2018 showed that gross fell from N1.9 billion in 2017 to N936 million in 2018. Losses, though lower class on class, remain desperate. The tauten made a loss after tax of N6.5 billion in 2018, as against a personnel casualty after tax of N13.2 billion recorded in 2017 .
The company ’ randomness auditors, PKF, have flagged the tauten ’ s growing refer judgment as a keystone audited account matter. The group ’ s stockholder funds have been eroded to the tune of N34.6 billion, as at 31st December 2018. These have culminated from past operational losses in the stopping point four years. sum indebtedness stand at N58.35 billion as at the 31st of December 2018 with a gearing ratio of 169:1 .
The parcel price of Japaul Oil & Maritime Services closed at N0.23 on Friday, June 19, 2020. While its price earning ratio stands at 0.04, the gain per contribution and price to book ratio stands at 6.53 and 0.2421 respectively.
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