TFP Solutions proposes RM17.5m capital reduction to offset losses

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KUALA LUMPUR (Sept 6): Loss-making TFP Solutions Bhd has proposed to undertake a reduction of its issued share capital, which will give rise to a credit of RM17.5 million to reduce the accumulated losses of the company and enhance its credibility with customers, suppliers and investors.

As at Dec 31, 2017, TFP’s accumulated losses stood at RM16.04 million.

In a filing with Bursa Malaysia today, the ACE Market-listed business solution provider said as at Sept 5, its issued share capital was RM20.51 million comprising 205.06 million shares including 1.28 million TFP shares held as treasury shares.

In addition, it has 97.65 million outstanding five-year warrants expiring on Feb 16, 2019, which can be exercised into 97.65 million new TFP shares at an exercise price of 10 sen each.

Assuming none of the existing warrants is exercised, the proposed share capital reduction will result in the reduction of its issued share capital to RM3 million comprising 205.06 million shares, and RM14.13 million comprising 302.71 million shares if the warrants are exercised.

The proposed share capital reduction is subject to the approval of its shareholders at an extraordinary general meeting to be convened.

"Barring any unforeseen circumstances, the board expects the proposed share capital reduction to be completed by the fourth quarter of 2018," said TFP.

TFP shares settled at 12.5 sen today, up 0.5 sen or 4.17%, with 81,600 units traded, valuing it at RM25.63 million.