Vitarich hints on capital infusion
Vitarich Corp. today said its board of directors has approved the plan for a quasi-reorganization that will be brought to shareholders for approval in its annual stockholders meeting scheduled for June 30, 2017.
In a disclosure to the stock exchange, Vitarich said the quasi reorganization will allow the company to eliminate its deficit and allow it to declare dividends from its unrestricted retained earnings that will be generated from the reorganization.
The company said the reorganization “might involve reducing par-value.”
Some companies reduce the par value of their shares as a prelude to a capital infusion. After the reduction in the par value, these companies move to increase the number of shares issued to allow for the infusion of additional capital. Existing shareholders are usually given first dibs on buying the new shares.