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What you are voting for in Purple's resolution.
Purple wants to issue more shares.
Reasons indicated are
- Issuing shares as part of a Staff Incentive Scheme.
- Possible repurchase of EasyEquities from Sanlam.
Issued shares need to be authorized.
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Purple wants to issue more shares.
Reasons indicated are
- Issuing shares as part of a Staff Incentive Scheme.
- Possible repurchase of EasyEquities from Sanlam.
Issued shares need to be authorized.
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Authorized shares - the maximum amount of shares a company is allowed to issue as approved by shareholders.
Issued shares - are the shares outstanding/in the market owned by shareholders and investors.
Issued shares - are the shares outstanding/in the market owned by shareholders and investors.
Purple currently does not have enough authorized shares.
They have 1.2bn authorized shares but anticipate the total after issuing to be 1.45bn.
You can see the problem.
They also cannot issue more shares than what is authorized by shareholders.
They have 1.2bn authorized shares but anticipate the total after issuing to be 1.45bn.
You can see the problem.
They also cannot issue more shares than what is authorized by shareholders.
So there is a need to increase the number authorized shares (resolution #2)
Before authorizing shares however they have to ensure they comprise of non-par value.
Their current shares are in par value of one cent & need to be converted - resolution #1
Before authorizing shares however they have to ensure they comprise of non-par value.
Their current shares are in par value of one cent & need to be converted - resolution #1
Reason for the conversion is companies are no longer allowed to authorize additional shares at par value.
This is stipulated in a companies act.
Authorized share capital has to be increased using non-par value shares.
This is stipulated in a companies act.
Authorized share capital has to be increased using non-par value shares.
The conversion from par to non-par requires approval from shareholder (resolution #1)
The conversion has no effect on the market value or the share price.
The conversion has no effect on the market value or the share price.
Difference between par and non-par,
- Par shares have a minimum value. They cannot be issued below the minimum price.
- Non par shares have no minimum value. Value is determine by what the investors are willing to pay.
- Par shares have a minimum value. They cannot be issued below the minimum price.
- Non par shares have no minimum value. Value is determine by what the investors are willing to pay.
Once the conversion has been approved PPE will now have non-par value share giving them the ability to authorize more shares.
Based on the outcome of resolution #2.
I believe 800 million more shares will be authorized taking the total to 2bn.
Based on the outcome of resolution #2.
I believe 800 million more shares will be authorized taking the total to 2bn.
2bn is more than the anticipated 1.45bn.
This increase will allow them enough room to issue shares for the reasons they listed & future obligations.
This issuing does however dilute shareholders.
Increase in shares outstanding decreases the earnings per share.
This increase will allow them enough room to issue shares for the reasons they listed & future obligations.
This issuing does however dilute shareholders.
Increase in shares outstanding decreases the earnings per share.
Go through their circular for more details and vote:
https://blog.gt247.com/hubfs/JOB021090__PURPLE%20GROUP%20CIRCULAR%20FINAL%20Sept%202020.pdf
https://blog.gt247.com/hubfs/JOB021090__PURPLE%20GROUP%20CIRCULAR%20FINAL%20Sept%202020.pdf
