Powerspeed to consolidate shares
In a statement, Powerspeed said shareholders would have an option to be paid cash for fractional shares or to top up the difference to get a full share.
HOME improvements retailer, Powerspeed Electrical Limited, will be issuing new share certificates after shareholders approved the consolidation of the company shares.
Typically, when a company’s shareholders agree to consolidate its shares, it means that the company is reducing the number of its outstanding shares by combining or merging multiple shares into a single share.
After delisting from the Zimbabwe Stock Exchange owing to the massive drop in foreign traders in December 2020, Powerspeed issued guidelines for its shares to be traded over-the-counter (OTC).
In a statement, Powerspeed said shareholders would have an option to be paid cash for fractional shares or to top up the difference to get a full share.
“New post consolidation certificates will be issued to replace the current certificates. The current certificates will automatically be invalidated and cannot be presented for trading from September 16, 2024. The new share certificates will be available for collection from September 16, 2024 at the transfer secretaries’ office,” Powerspeed said.
“The top up or fractional shares shall be paid at a price of US$0,15 or equivalent, per pre-consolidation share.
“Election forms shall be mailed to each shareholder for them to indicate their option with the default option being cash payment for the fractional shares.”
Powerspeed said the option to top up and get a full share would be closed on September 13.
“If, for whatever reason, no election form is submitted by 1600hrs on September 13, 2024 to the transfer secretaries, the shareholder will be regarded as having opted to be paid cash for the fractional shares,” Powerspeed said.
“Trading of the company’s pre-consolidation shares on the OTC will end on September 13, 2024. The share register shall be closed from September 14, 2024 and re-opened on September 16, 2024.
It said trades from September 16, 2024 shall be based on the post consolidation shares and only new share certificates shall be presented for trading.
In its half year report ended March 31, 2024 released in June, Powerspeed said the increasing regulatory burden, complexity and escalating costs of conducting business in Zimbabwe were gradually eroding the formal business sector.
“In contrast, the informal sector is largely exempt from these challenges, contributing to the economy’s informalisation a trend that poses a continuous threat to our business and other formal enterprises,” Powerspeed said.
It said strong remittance flows from the diaspora are fuelling a surge in residential construction nationwide, thereby boosting the demand for building materials.
“We have significantly enhanced our capacity to serve this market segment and anticipate further growth from this demographic,” Powerspeed said.newsda
