EXTRAWELL PHAR (00858) proposes to implement a share consolidation, capital reduction, and share subdivision.

EXTRAWELL PHAR (00858) announces that the board proposes to implement the proposed transactions (i.e. the share consolidation, the capital reduction and the share subdivision). The proposed share consolidation is on the basis that every 20 issued and unissued existing shares of HK$0.01 each in the share capital of the company be consolidated into 1 consolidated share of HK$0.20 each in the share capital of the company, and where applicable, the total number of consolidated shares in the issued share capital of the company immediately following the share consolidation will be rounded down to the nearest whole number by cancelling any fractional shares that may arise in the issued share capital of the company as a result of the share consolidation. Immediately upon the share consolidation becoming effective, the capital reduction will be carried out as follows: (i) any fractional consolidated shares arising in the issued share capital of the company as a result of the share consolidation will be cancelled; (ii) the par value of each then issued consolidated share will be reduced from HK$0.20 to HK$0.01 by cancelling HK$0.19 of the paid-up capital of the company in respect of each then issued consolidated share, such that upon such reduction, each issued consolidated share will become one new share of HK$0.01 each; and (iii) the credit arising from the capital reduction will be transferred to a paid-up surplus account, which may be applied by the board at its discretion in any manner permitted by applicable laws and the articles of association of the company. Immediately upon the capital reduction becoming effective, each then authorised but unissued consolidated share will be subdivided into 20 new shares of HK$0.01 each. The new shares will rank pari passu in all respects with each other, and the proposed transactions will not result in any change in the relative rights of shareholders. On the premise that the proposed transactions become effective, the board lot size for trading in shares on the Stock Exchange will be changed from 10,000 existing shares to 1,000 new shares.