KUALA LUMPUR (March 3): Nexgram Holdings Bhd has proposed to cancel RM142.6 million of its issued share capital, in a move to reduce the group’s accumulated losses.

In a bourse filing today, the group said its accumulated losses as at July 31, 2020 stood at RM138.23 million.

It added that it expects to return to profitability of RM4.25 million, following the capital reduction exercise.

The group said the exercise will enable it to reduce its accumulated losses via cancellation of the share capital which is lost or unpresented by available assets of the group.

It may also enhance the group’s credibility with its customers, suppliers and investors, it added.

The proposal, subject to shareholders' approval, is expected to be completed in the second quarter of 2021.

Nexgram’s share price was unchanged at 4.5 sen today, valuing the group at RM123.35 million.