Sinaran Advance Group Bhd (SAG), formerly known as K-Star Sports Ltd, intends to carry out a RM68 million capital reduction through the cancellation of issued share capital to offset accumulated losses.

The proposed exercise aims to bring the share capital down to RM42.74 million, effectively utilizing the reduction to cover the existing accumulated losses of RM69.21 million at the company level.

SAG noted that this capital reduction would accurately mirror the group's financial position, aligning the issued share capital with available assets.

The primary objectives include eliminating accumulated losses, facilitating future dividend payments, and establishing a stronger financial foundation for the group's growth.

As of January 3, 2024, SAG's issued share capital was RM110.74 million, consisting of 914.96 million shares.

The company assured that the proposed capital reduction would not impact the share price or the existing number of shares in circulation.

The proposed exercise is contingent on the approval of SAG's shareholders at an upcoming extraordinary general meeting.

Subject to unforeseen circumstances, the completion is anticipated in the second quarter of 2024.

M&A Securities Sdn Bhd has been appointed as the principal adviser for the capital reduction.

SAG's shares closed unchanged at 8 sen today, with a trading volume of 2.48 million shares and a market capitalisation of RM73.2 million.