rns out dividend news!30 Apr 2013 08:31
PURE WAFER PLC
(AIM: PUR)
Cancellation of Share Premium Account and General Meeting
Pure Wafer plc ("Pure Wafer" or "the Company"), a provider of high quality silicon wafer reclaim services for many of the world's leading semiconductor manufacturers as an integral part of their cost control programmes, announces that it has convened a General Meeting for the purpose of approving a proposal to eliminate the Company's share premium account to enable the payment of dividends.
On 25(th) April 2013, the board of directors of Pure Wafer International Limited ("PWIL") concluded that it was entitled to treat a reserve of GBP9,030,000, which formed part of its capital and reserves, as a distributable reserve. Pursuant to a court order relating to a reduction of PWIL's capital and share premium account in 2007, this reserve was to be treated as a non-distributable reserve until all creditors of PWIL at that time had been discharged in full. With the refinancing of group debt in January 2013, this condition was satisfied and the reserve can now be treated as a distributable reserve.
In addition, on 25(th) April 2013, the board of directors of PWIL approved a reduction of share capital and cancellation of the share premium account of PWIL.
These matters have resulted in PWIL having positive distributable reserves available for distribution to the Company by way of dividend of $32,202,000 (on the basis of PWIL's latest reported balance sheet position as at 30(th) June 2012). Subject to the results of PWIL for the full financial year ending 30(th) June 2013, the board of PWIL has expressed an intention to declare a dividend in favour of the Company of some or all of its distributable reserves at that time.
Your Board has decided that, in addition to the above, it is in the best interests of Shareholders to cancel the Company's existing share premium account (being $24,857,075 as at 30(th) June 2012) in order to eliminate the deficit on the Company's profit and loss account (being $8,049,000 as at 30(th) June 2012) and to create distributable reserves of approximately $16,808,000 (in addition to those which might be created by the declaration of any dividend in favour of the Company by PWIL) which will then be available for distribution to shareholders by way of dividend in the future (subject to future profits made or losses incurred by the Company).
The Company's Share Premium Account is $27,457,096 as at 31st March 2013 the latest practicable date prior to the posting of the Notice of meeting). The Company is proposing, subject to the passing of the Resolution at the General Meeting and the subsequent confirmation of the Court, to cancel this Share Premium Account and to use the proceeds to eliminate the deficit on the Company's profit and loss account and to create a distributable reserve of the Company which will enable the Company to make distributions in the future should it be considered appropriate