SmarT.TV financial news app, CN Culture GP (00745) announced that the board of directors has proposed a share capital restructuring, involving share capital reduction and share split.

(1) Share Capital Reduction

The company will reduce the issued share capital by 0.39 Hong Kong dollars per share through cancellation of the full share capital of the issued shares, reducing the face value of each existing issued share from 0.40 Hong Kong dollars to 0.01 Hong Kong dollars. The proceeds generated from the share capital reduction will be used to offset the company's accumulated losses up to the effective date of the share capital reduction, thereby reducing the company's accumulated losses; and

(2) Share Split

Following the effective share capital reduction, the statutory share capital of the company will split each issued share of face value 0.40 Hong Kong dollars and each unissued preferential share of face value 1.40 Hong Kong dollars into 40 adjusted shares of face value 0.01 Hong Kong dollars each, and 40 adjusted preferential shares of face value 0.035 Hong Kong dollars each.

As of the date of this announcement, existing shares are traded on the Stock Exchange in lots of 0.01 million shares per existing share. After the share capital restructuring takes effect, the board of directors proposes to change the trading units on the Stock Exchange from 0.01 million shares per existing share to 0.02 million adjusted shares.

The board of directors proposes that after the capital restructuring becomes effective, eligible shareholders will receive 2 rights shares for every 1 share held on the record date at a subscription price of HK$0.10 per rights share. Up to approximately 156 million rights shares will be issued (assuming full subscription of the rights issue and no change in the total number of issued shares from the date of this announcement to the record date, except for changes resulting from the capital restructuring), raising a maximum of around HK$15.6 million (before expenses).