NoonTalk to seek approval for share-purchase scheme at Oct 23 EGM
Mia Pei
NOONTALK Media will hold an extraordinary general meeting (EGM) on Oct 23 to seek approval for a proposed share-purchase mandate, with or without modifications, and via either on-market or off-market purchase.
The share-acquisition scheme is intended to give the company more flexibility to improve shareholder value, by potentially increasing the return on equity and giving back cash surplus to shareholders, the company said on Friday (Oct 6).
One reason for adopting the mandate is that the shares acquired and held as treasury shares may allow for tax deductions.
At the same time, the use of treasury shares – as opposed to issuing new shares – can blunt the dilution impact on existing shareholders.
The media entertainment company also noted that the mandate will allow for share repurchases at any time, subject to market conditions, during the in-force period.
Once the proposed adoption is approved, the mandate will take effect from the date the resolution is passed, and continue to be in force until the next annual general meeting. The in-force period could also be until the shares purchased have met the limit mandated, whichever is earlier.
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The company directors will decide between doing the share purchases on-market or off, depending on the amount of cash available, prevailing market conditions and the most cost-effective approach.
No share purchases will be made if the move hurts the company’s liquidity, capital adequacy or its Catalist listing status.
NoonTalk, led by Singaporean actor, TV host and radio DJ Dasmond Koh, lodged a Catalist initial public offering (IPO) in October last year.
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The 22 million shares offered at S$0.22 apiece were later 1.2 times subscribed.
The company posted a full-year loss of S$3.2 million for FY2023 ended June, its first fiscal results since the IPO, compared with a net profit of S$22,407 in the previous year.
The full-year loss was exacerbated by a 112 per cent or S$1.9 million increase in administrative expenses.
Both the full-year and fiscal second-half revenues dropped on the year, according to its financial statement released on Aug 21.
As the company suffered a loss for the year, no dividend was declared or recommended for the fiscal year.
Shares of NoonTalk last traded at S$0.098 on Tuesday.
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