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mDR proposes 100-for-1 share consolidation
MAINBOARD-listed mDR has proposed to undertake a 100-for-one share consolidation, subject to shareholders' approval at an extraordinary general meeting (EGM).
The share consolidation will raise the theoretical trading price and net tangible asset of each share, which could help increase market interest in the shares, mdR said.
mDR, which provides after-market service for mobile phones and various consumer electronics products, also believes that the share consolidation will reduce the volatility of its share price and reduce fluctuations in the company’s marketcapitalisation.
Upon completion of the share consolidation, 1,261 shareholders will hold less than 100 consolidated shares. Shareholders who receive odd lots of consolidated shares can use the Singapore Exchange's unit share market to trade in odd lots with a minimum size of one consolidated share.
Shareholders who wish to trade on the unit share market should contact their stockbroker, bank manager, or other professional adviser for details on trading.
However, shareholders who hold odd lots may have to bear disproportionate transaction costs in trading their shares and may find difficulty in realising the fair market price of such shares.
A circular to shareholders containing details of the proposed share consolidation and the notice of EGM will be despatched in due course, mDR said.
mDR also has 49.7 billion unexercised warrants pursuant to the rights-cum-warrants issue completed in June 2018. mDR will make further announcements in relation to the adjustments to the warrants at a later date.
mDR shares closed at S$0.001 on Thursday.