March 6, 2018
Derrimon Trading Company Limited (DTL) held its Extraordinary General Meeting with shareholders earlier today, March 6, 2018. The main purpose of the meeting was to put the following three matters to poll:
- An Ordinary Resolution to increase the Authorised Share Capital of the Company to create an additional 400,000,000 share.
- An Ordinary Resolution to designate the 400,000,000 newly created shares as redeemable preference shares and granting the Board the authority to issue those shares from time to time and to designate the rights and restrictions attaching to those redeemable preference shares.
- A Special Resolution to amend the Articles of Incorporation of the company to grant the Board the authority to issue redeemable preference shares from time to time with default terms of redemption.
Shareholders voted unanimously in favour of the resolutions, allowing the company the option of refinancing its “2015 Cumulative Redeemable Preference Shares” – which falls due 12th March 2018- without having to deplete is cash reserves. The company’s audited results for the 2017 financial year revealed DTL’s Cash and Bank balances as at December 31, 2017 increased 68% to $265.5 million (2016: $157.93 million).
Chairman/CEO Derrick Cotterell believes now is an opportune time to tap the capital market because interest rate is at single digits and falling. When quizzed about the benefits of adding preference shares to the firm’s capital structure, Chief financial Officer, Ian Kelly, believes preference shares fits better in the company’s future plan as it offers greater flexibility to the company’s finances. According to Mr. Kelly, “besides, preference share does not require any collaterals.”
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