Power Metal Resources PLC announces a proposed capital reduction aimed at increasing its distributable reserves and providing greater flexibility for potential future shareholder returns.
The company intends to cancel the entire balance standing to the credit of its share premium account, subject to shareholder approval at a forthcoming General Meeting and subsequent court confirmation. The amount cancelled will be transferred to the company’s distributable reserves.
This restructuring is intended to enable the company to consider ordinary share buy-backs, dividend payments, or other forms of shareholder distributions in the future, as appropriate.
The company will provide shareholders with further details, including the date of the General Meeting to approve the Capital Reduction and the subsequent Court application process, in due course.
In a statement, the company said: “The company will, accordingly, be seeking shareholder approval to cancel the entire amount standing to the credit of its share premium account … This will improve the company’s distributable reserves position and will provide the company with flexibility to support, amongst other things, ordinary share buy-backs and the payment of dividends or other distributions to shareholders in the future,”
