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Hi,
Could you please explain the statement and how it would impact SOFP
“The existing ordinary shares will be cancelled and ordinary shareholders will be issued with 40 millions $1 ordinary shares in exchange of cash payment at par”Thanks in advance
The existing ordinary shares will be cancelled – so the existing shares disappear from the SOFP.
The shareholders are then issued with 40M shares for cash – so share capital will appear on the SOFP at $40M (plus of course the other shares issued), and the company receives cash of $40M.
Hi John,
Thanks for your reply.
Means $40m ordinary shareholder was cancelled with out paying any thing?So can I assume that when question says cancelled and no other info so I would have to just remove from SOFP.
Please correct me if I am wrong.
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