Cacola Furniture plans to cut par value of shares

Cacola Furniture International said on Friday that it plans to cut the par value of its shares to HK$0.01 per share from HK$0.10.

It noted that its shares have been trading between S$0.015 and S$0.028 (around HK$0.084 and HK$0.157 respectively) during the past three months, with a weighted average price of about S$0.023 (about HK$0.129).

"In view of the fluctuation in the share prices in the past six months and the fact that the shares are trading on the mainboard around the region of the par value of the shares, the directors are of the view that the company should undertake the Proposed Capital Reduction which will allow the company the ability to issue shares below the current par value of the shares of HK$0.10,'' Cacola said.

It added that it would enable the company to respond promptly and to take advantage of opportunities as and when they arise by using the financial platform offered by equity instruments.