KUALA LUMPUR (Dec 17): VSolar Group Bhd has proposed a share capital reduction to eliminate up to RM100 million of its accumulated losses.

The ACE-listed company involved in renewable energy, media publishing, software solutions and production house had an issued share capital of RM192.39 million as of Dec 2, 2024, comprising 497.25 million ordinary shares and 168.05 million outstanding warrants that are exercisable into an equivalent number of new shares at an exercise price of 10 sen per share.

At the group level, VSolar’s accumulated losses stood at RM95.38 million at the end of Sept 30, 2024. After the proposed share capital reduction, VSolar will have retained net earnings of RM4.44 million.

The company has been loss making for the past nine financial years, with its net loss narrowing to RM3.12 million in FY2024 from RM14.93 million in the previous year.

VSolar had frequently raised capital through rights issues and private placements to fund its operations. As recently as April this year, the company raised RM33.61 million through a rights issue with free warrants.

The proposed share capital reduction is subject to shareholders' approval at an upcoming extraordinary general meeting (EGM). If approved, the reduction is expected to be completed in the second quarter of 2025. M&A Securities has been appointed as the principal adviser for the proposed exercise.

VSolar's share price closed at 6.5 sen on Tuesday, down 0.5 sen or 7.1%, giving the company a market capitalization of RM32.32 million.