SGM.L Regulatory News (SGM)

26 Nov 2008 07:00



STOCK EXCHANGE ANNOUNCEMENT

Sigma Capital Group plc (the "Company") 

26 November 2008

Posting of Circular regarding a proposed reduction of the Company's share premium account

Sigma Capital Group plc announces that a circular has been posted to its shareholders convening a General Meeting to be held at 41 Charlotte Square, Edinburgh EH2 4HQ at 9:00 a.m. on 11 December 2008. 

Looking forward, the Company wants to be in a position to pay a dividend to shareholders out of any future profits that it may generate. As it currently stands, the Company will be unable to do this until it generates sufficient profits to eliminate its historic losses, which at the end of the last financial year, 31 December 2007, were £9.98 million. The Company is therefore proposing to use its share premium account to eliminate the historic losses, thereby accelerating when the Company will be in a position to pay a dividend.

The purpose of the general meeting is to seek shareholder approval to reduce the Company's share premium account of £18,195,461.60 to £4,195,461.60. The reduction of the share premium account (the "Reduction") will enable the Company to eliminate the deficit on its profit and loss account and, if and to the extent that the Reduction creates a reserve in excess of such deficit, and subject to the terms of any undertaking given to the High Court for the protection of creditors, to make distributions to shareholders as and when the Directors consider it appropriate to do so. The Reduction must be first approved by shareholders by special resolution, and subsequently confirmed by order of the High Court on the application to the High Court by the Company.

The Company expects its application to the High Court for confirmation of the Reduction to be heard on 21 January 2009 and the Reduction to take effect a few days later upon the order of the High Court confirming the Reduction being registered by the Company with the Registrar of Companies.

Copies of the circular are available on request from the Company's office at  41 Charlotte Square, Edinburgh EH2 4HQ and on the Company's website, www.sigmacapital.co.uk. 

Enquiries: 

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