KUALA LUMPUR (Nov 11): Wood processing firm BTM Resources Bhd (KL:BTM) has on Tuesday proposed an RM80 million capital reduction to eliminate accumulated losses and restore positive retained earnings.

According to its filing with Bursa Malaysia, the group had accumulated losses of RM78.88 million at the group level and RM68.36 million at the company level, based on audited results for the 18-month period ended June 30, 2025.

Following the capital reduction, BTM is expected to have retained earnings of RM1.02 million at the group level and RM11.54 million at the company level.

As at Oct 31, the group’s issued share capital stood at RM97.9 million, comprising 1.26 billion shares and 307.19 million outstanding warrants C, which are exercisable into an equal number of new shares at 10 sen each.

Upon completion of the proposed exercise — targeted for the first half of 2026 — BTM’s issued share capital will be reduced to RM17.9 million.

BTM Resources has been recording consecutive losses since 2017. For the 18-month financial period ended June 30, 2025, the group posted a net loss of RM17.01 million, on revenue of RM9.1 million.

Shares of BTM Resources closed unchanged at three sen on Tuesday, giving it a market capitalisation of RM37.69 million. Year-to-date, the counter has fallen 40%.