KUALA LUMPUR (July 4): Silver Ridge Holdings Bhd plans to halve the par value of its shares to 5 sen from 10 sen each, to reduce the group's accumulated losses of RM6.82 million with the credit that will arise from the proposed corporate exercise.

There could be at least RM6.05 million credit arising from the move — assuming none of its outstanding warrants are exercised into new shares prior to the par value reduction — or as much as RM8.8 million, assuming the reverse is true, i.e. all outstanding warrants are exercised.

The board, however, thinks this is unlikely in view of the fact that the last transacted price of Silver Ridge shares, prior to the date of announcement, was at 10.5 sen, which is lower than the exercise price of the outstanding warrants of 18 sen each.

As at July 1, the company had an issued and paid-up share capital of RM12.1 million comprising 121 million shares, with 55 million outstanding warrants, according to its bourse filing today.

Meanwhile, the IT products and services provider said it plans to amend its memorandum of association, under which it is stated that its share capital amounted to RM25 million divided into 250 million shares of 10 sen each, to 500 million shares of 5 sen each, to reflect the change in the par value of its shares.

Subject to the necessary approvals obtained, including that of its shareholders, the company expects the corporate proposals to be completed in the fourth quarter of this year.

Silver Ridge was not traded today. It last transacted at 10.5 sen on June 30, which gives it a market capitalisation of RM12.71 million.