Zhitong Finance App News, Jingyou Pharmaceutical (00858) issued an announcement. The board of directors recommended implementing the proposed transactions (i.e. share mergers, share capital reduction, and share division).
The basis for the proposed share consolidation is the consolidation of issued and unissued existing shares with a face value of HK$0.01 per 20 shares in the company's share capital into a consolidated share with a face value of HK$0.20 in the company's share capital. Where applicable, the total number of consolidated shares in the company's issued share capital immediately following the consolidation of the shares will be rounded down to the nearest whole number by canceling any fragmented shares that may have arisen in the company's issued share capital as a result of the share consolidation.
Immediately after the share merger comes into effect, the share capital reduction will be carried out as follows: (i) any fragmented consolidated shares arising from the company's issued share capital as a result of the share merger will be cancelled; (ii) the face value of each consolidated share already issued at the time will be reduced from HK$0.20 to HK$0.01 by canceling the full payment of the company's share capital of HK$0.19 for each consolidated share already issued at the time. As a result, after the relevant reduction, each consolidated share will become a new share with a face value of HK$0.01; (iii) the balance amount generated by the share capital will be reduced. Transfer to a paid-up surplus account for use The Board of Directors may use as appropriate in any manner permitted by applicable law and company rules. Immediately after the share capital reduction comes into effect, each consolidated share that was statutory but not issued at the time will be split into 20 new shares with a face value of HK$0.01 per share. The new shares will enjoy equal rights in all aspects of each other, and the proposed transaction will not result in any change in the shareholders' relative rights.
On the premise that the proposed transaction takes effect, the trading unit for each share transaction on the Stock Exchange will be changed from 10,000 existing shares to 1,000 new shares.