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LONDON - Power Metal Resources PLC (AIM:POW) announced Monday it will seek shareholder approval for a share capital reduction at a general meeting scheduled for November 10, 2025, potentially paving the way for future returns to shareholders.
The London-listed natural resources exploration company plans to cancel its non-voting deferred shares, share premium account, and capital redemption reserve, according to a circular being sent to shareholders today.
The proposed move aims to create sufficient distributable reserves that could facilitate a potential return of capital to shareholders, following up on a previous announcement made on September 19.
If approved, the share capital reduction would allow the company to apply resulting sums to its distributable reserves, providing flexibility to absorb future losses or make distributions to shareholders, subject to applicable laws.
The company noted that the cancellation of non-voting shares and the share premium account balance should be sufficient to eliminate accumulated losses on its balance sheet, creating a positive balance.
Power Metal emphasized that the reduction would not change the number of ordinary shares in issue or the rights attached to them, and is not expected to affect the market price of the company's shares.
The board has recommended shareholders vote in favor of the special resolutions at the general meeting, which will be held at Guildhall Room in London. If approved, the company will then seek confirmation from the Court to implement the reduction.
This information is based on a press release statement from Power Metal Resources.
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