LONDON - Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a manufacturer of utility-grade energy storage systems, has announced the successful sanction by the English Courts of its previously proposed Reduction of Capital. This legal procedure, effective upon the registration of the Court Order, slated for January 15, 2025, will lower the nominal value of Invinity's ordinary shares from 14 pence to 1 pence each.
The Reduction of Capital is designed to create distributable reserves amounting to approximately £57.3 million, which the company indicates could potentially be used for future dividend payments. However, Invinity has clarified that it does not intend to declare dividends in the near term, and there is no certainty regarding the level of dividends that may be paid in the future.
Invinity has assured its shareholders and the market that this financial maneuver will not alter the number of shares in circulation, nor will it affect the company's cash balance. Moreover, the change in nominal share value is not expected to impact the market value of the shares. This move is part of a strategic effort to strengthen the company's financial structure, as detailed in the Circular released on November 22, 2024.
This announcement is based on a press release statement from Invinity Energy Systems plc.
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