VSolar Group Bhd has proposed to undertake a share capital reduction of RM100 million to set off the company's accumulated losses.

As of Dec 2, VSolar said it has an issued share capital of RM192.39 million comprising 497.25 million shares and 168.05 million outstanding warrants which are exercisable into an equivalent number of new shares at an exercise price of 10 sen.

The company said the proposed capital reduction will give rise to a credit of RM100 million, "which will be utilised to set off the accumulated losses and the remaining balance, if any, will be credited to the group's capital reserves, which serves as additional credit buffer to set off future losses".

"The proposed capital reduction will enable the company to reduce its accumulated losses via reduction and cancellation of the company's issued share capital which is lost and unrepresented by available assets of the company.

"The proposed capital reduction will also enhance VSolar's ability to provide a better financial platform for the group's future growth moving forward," it said in a filing to Bursa Malaysia.

The group said the proposed capital reduction is subject to approvals from the shareholders of Vsolar at an EGM to be convened.

The proposed capital reduction is expected to be completed in the second quarter of 2025.

M&A Securities Bhd has been appointed as the principal advisor to VSolar for the proposed capital reduction.