Cuscapi Proposes Capital Reduction and Share Issuance Scheme

Cuscapi Bhd has proposed a share capital reduction of up to RM190 million to rationalize its financial position, Malaysia's national news agency Bernama reported on Friday.

The company also plans to establish a share issuance scheme involving up to 15% of its total issued shares, excluding treasury shares, for eligible persons.

As of the latest practicable date, Cuscapi had an issued share capital of RM203.37 million, comprising 944.88 million shares.

The proposed capital reduction aims to reduce accumulated losses and enhance the company's credibility with stakeholders, allowing it to obtain better financing terms and business opportunities.

Cuscapi intends to use the proceeds from the share issuance scheme for working capital, including operating expenses, general and administrative expenses, and project deployment expenses.

The company said the proceeds to be utilized for each component of working capital are subject to operating requirements at the time of utilization, and the timeframe for full utilization cannot be determined at this juncture.

Background

Cuscapi Bhd is a Malaysian company listed on the Bursa Malaysia stock exchange.

The company is involved in the technology and services sectors, providing solutions for various industries.

Context

Capital reduction and share issuance schemes are common corporate actions used by companies to restructure their financial position and raise funds for future growth.

These actions can help companies like Cuscapi to improve their financial health, enhance credibility with stakeholders, and position themselves for future business opportunities.