Doric Co Dec 2010

This topic has 4 replies, 2 voices, and was last updated 8 years ago by John Moffat.

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November 8, 2017 at 6:20 am #414786
ahmedp4
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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
November 8, 2017 at 9:33 am #414809
John Moffat
Keymaster
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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.
November 8, 2017 at 11:46 am #414828
ahmedp4
Member
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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.
November 8, 2017 at 1:02 pm #414840
ahmedp4
Member
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Also can you please elaborate what would happen to reserves?
November 8, 2017 at 2:02 pm #414851
John Moffat
Keymaster
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First question: What you have written is correct.

Second question: The reserves disappear – this is a restructuring.
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