KUALA LUMPUR (Sept 29): MNC Wireless Bhd (KL:MNC) said on Tuesday it is terminating the services of its advisers for its proposed capital reduction exercise of RM83 million.

In a circular on Bursa Malaysia, the mobile and digital solutions company said the termination of Sierac Corporate Advisers Sdn Bhd was based on a mutual agreement between the two parties. It did not elaborate on the reason for the termination.

The company said Sierac Corporate Advisers will be replaced by TA Securities Holdings Bhd.

The capital reduction involves MNC Wireless cancelling RM83 million of its issued share capital and applying the amount against its accumulated losses, the company had said in a Sept 1 filing.

The exercise falls under Section 117 of the Companies Act 2016 which allows a company to cancel share capital that is lost or not backed by available assets.

As at Aug 17, the ACE Market-listed company had an issued share capital of RM147.7 million, comprising 943.25 million shares. Its accumulated losses stood at RM83.09 million at the company level and RM79.59 million at the group level as of May 31.

After the credit is applied and about RM110,000 in estimated expenses is deducted, the company would still show accumulated losses of RM198,000 on the May 31 figures. It would report retained earnings of RM3.3 million.

On the audited Aug 31, 2025 figures, MNC Wireless would be in positive territory, at RM4.96 million for the company and RM6.48 million for the group.

The issued share capital would fall to RM64.7 million if no outstanding convertible securities are exercised beforehand. If all 12.21 million irredeemable convertible preference shares and 235.08 million Warrants D are converted or exercised, the figure would be RM85.95 million, spread over 1.19 billion shares.

Completion is targeted for the first quarter of 2027.

Shares of MNC Wireless closed half a sen or 16.7% lower at 2.5 sen on Tuesday, giving a market capitalisation of RM23.8 million.