Court Approval of Capital ReductionSource: RNS
2nd September 2020
Zinc Media Group plc ("Zinc Media" or the "Company")
Court Approval of Capital Reduction
Further to the Extraordinary General Meeting on 12th February 2020 at which a resolution was passed for a share capital reduction of the Company (the "Capital Reduction"), Zinc Media Group plc, (AIM: ZIN) is pleased to announce the Capital Reduction has been approved by the Court of Session in Edinburgh.
Earlier today, the application to the Court of Session was granted. In order for the Capital Reduction to become effective, the order of the Court conﬁrming it, under section 648 of the Companies Act 2006, must be registered with the Registrar of Companies, which is expected to be completed by 4th September 2020.
The Court of Session has approved:
1. The cancellation of the Deferred Shares and the D Deferred Shares for no consideration; and
2. The cancellation of the new B Ordinary Shares, which are to be created through the capitalisation of an amount equal to the entire balance standing to the credit of the Company's merger reserve and application of that amount in paying up in full at par new B Ordinary Shares, their issue and subsequent cancellation for no consideration; and
3. The cancellation of the entire balance standing to the credit of the Company's share premium account.
The Capital Reduction will create realised profits that will eliminate the current deficit on the Company's retained loss account. As a result, any positive distributable reserves generated by the Company from this point should be available for the Board to use in offsetting future losses or for the purposes of paying dividends in the future, subject to the continuing satisfactory financial performance of the Group.
The Capital Reduction was proposed in January 2020 as part of the wider balance restructure, with the aim of simplifying the capital structure and bolstering the Company's potential to pay dividends in the future as the business grows. Along with the share consolidation which occurred in February 2020 it is also expected to improve the marketability of the Ordinary Shares.
For further information, please contact:
Zinc Media Group plc +44 (0) 20 7878 2311
Mark Browning, CEO
Will Sawyer, CFO
N+1 Singer (NOMAD and Broker to Zinc Media) +44 (0) 20 7496 3000
Notes to Editors
Zinc Media Group plc is a leading British based TV and content creation company and operates 6 TV labels and a content division called Zinc Communicate.
The six award winning and critically acclaimed television production labels include Blakeway, Brook Lapping, Films of Record, Blakeway North, Reef Television and Tern Television, whose brands produce television and radio programmes for both UK and international broadcasters.
The Zinc Communicate division comprises all the Groups content making divisions outside its TV labels. This includes the former Ten Alps Communication division now known as Zinc Communicate - Publishing which also houses a new video marketing division, and Zinc Communicate - Branded Content which produces content for brands, advertisers, agencies and media owners.
For further information on Zinc Media please visit: http://www.zincmedia.com/