Existing shareholders enjoy priority right for share subscription
By Amit Chettupuzha
DUBAI/January 06-2021: Gulfa General Investments Company, formerly Gulfa Mineral Water and Processing Industries, is planning to increase its paid up capital by four-fold, from AED30 million to AED150 million.
A board meeting on Tuesday (January 06) “has decided to increase the issued capital of the company by no more than AED120 million through the issuance of new shares with a nominal value of one dirham for each share.”
The company statement said the shareholders shall have the priority right to subscribe to the new shares, after obtaining the approval of the General Assembly, the Securities and Commodities Authority (SCA) and other necessary approvals.
Accumulated losses
The company with a current share capital of AED30 million had an accumulated losses to the tune of AED8.11 million or 27 per cent of the paid up capital, and a total assets of AED42.41 million as of September 30, 2020.
The company said it had collected AED10 million through the issue of additional shares. As in November, the additional paid up capital had not been authorised and confirmed by DFM and SCA, and hence was classified as ‘under additional paid-up capital’.
Accounts qualified
The auditors had ‘qualified’ the financial accounts of the three-month period ending September 30, 2020, of the company, for not furnishing the relevant details with regard to the sale of a business segment of the company during the period closing on September 30, 2020.
Key business segment sold
The Group also informed it had sold the business related to its main activity of producing and selling mineral water and other related activities along with all related assets and liabilities to a third party and the deal had resulted in a loss amounting to AED2.60 million, according to a company report.
Sale of investment property
The Group said it had sold its investment property amounting to AED25.20 million where a loss of AED15.20 was booked. The group collected the proceeds amounting to AED10 million as per the initial sale and purchase agreement.
