5N Plus shareholders approve reduction in stated capital

Specialty metal and chemical products firm 5N Plus Inc says that, at a special meeting of its shareholders in Montreal, Quebec, Canada, shareholders voted to approve the following resolution (reproduced in its entirety in the Management Proxy Circular of 11 January): “The stated capital of the common shares of 5N Plus be reduced to US$5m and the amount of the reduction be added to the contributed surplus of the company pursuant to Section 38(1) of the Canada Business Corporation Act”.

5N Plus provides purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, and also produces related II-VI semiconducting compounds such as cadmium telluride (CdTe), cadmium sulphide (CdS) and indium antimonide (InSb) as precursors for the growth of crystals for solar, LED and eco-friendly materials applications.

“The reduction of stated capital will benefit the company on a go-forward basis by providing more flexibility in managing its capital structure, including its ability to pay dividends and repurchase common shares,” believes chief financial officer Richard Perron. "The reduction of stated capital will not result in any change to shareholders’ equity as presented in the company's financial statements and therefore will not affect the company's book value,” he adds. “The reduction of stated capital will also have no impact on the day-to-day operations of the company and will not, on its own, alter the financial condition of the company.”

The resolution regarding the stated capital reduction was approved by holders representing about 82.54% of 5N Plus’ common shares who voted on the resolution.

Tags: 5N Plus

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