KUALA LUMPUR (Oct 13): XOX Bhd’s share price dropped sharply today, after the mobile virtual network operator (MVNO) last week proposed several corporate exercises.

Among the corporate exercises proposed were a reduction in par value from 10 sen to 5 sen per share, share premium reduction of up to RM32.73 million, a two-to-one shares consolidation, as well as a restricted issue and a 1-for-1 rights issue of shares with warrants.

At 3.37 pm today, XOX shed half a sen or 6.3% to 7.5 sen, giving it a market capitalisation of RM24.9 million. It was the fourth most active counter, with some 26.2 million shares traded. The stock had earlier fallen to a low of 7 sen within intra-day session.

XOX was traded at 10.5 sen on Oct 9, the day before the proposed corporate exercises were announced.

When contacted, Group Managing Director Datuk Eddie Chai said he was not concerned of the fall in XOX’s share price.

“I think it [share price decline] is due to the corporate exercises announced last week. Nevertheless, it is of no concern,” he stressed over the telephone.

Chai assured that the proposed corporate exercises were a move to turn XOX around, for the ‘future benefit’ of its shareholders.

He expects XOX to return to post profits in the next calendar year, on the back of higher sales.

“We expect XOX to make profit, as sales pick up. We are confident on the number [revenue],” he added.

XOX posted a loss of RM1.24 million in the financial year ended June 30, 2014, from a net profit of RM4.59 million in the previous financial year. Revenue was RM56.8 million in FY14 and RM40.81 million in FY13.