KUALA LUMPUR (Jan 6): XOX Networks Bhd (KL:XOXNET), an event management and distribution company, has proposed a share capital reduction to wipe out up to RM55 million of its accumulated losses.

The ACE Market-listed company, which operates in various sectors including retail, financial solutions, and digital media management, had an issued share capital of RM87.76 million as of Dec 20, 2024, comprising about 1.135 billion ordinary shares. The company does not have any treasury shares or outstanding convertible securities.

At the group level, XOX Networks' accumulated losses stood at RM47.01 million as of Sept 30, 2024.

It plans to reduce up to RM55 million of its issued share capital, with the corresponding credit arising from it to be used to set-off against the accumulated losses, leaving it with retained net earnings of RM7.82 million.

XOX Networks has been operating at a loss for nine consecutive financial years. Its net loss narrowed to RM7.77 million in the financial year ended June 30, 2024 (FY2024) from RM12.09 million in FY2023. 

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

XOX Networks' share price closed unchanged at 2.5 sen on Monday, resulting in a market capitalisation of RM28.39 million.