OTCO International Board approves 1:4 bonus issue

OTCO International Ltd has announced that the Board of Directors of the Company at its meeting held on June 30, 2007, inter alia, has decided the following:

- In view of the requirements for obtaining Certification of Registration under the Credit Information Companies (Regulation) Act 2005, the Company has decided to increase the Authorised Capital of the Company from Rs 3 Crores to Rs 30 Crores subject to approval of the Shareholders in the General Meeting and comply with the requirements of the said Act, and fulfill the conditions to apply for a Certificate of Registration with the Reserve Bank of India.

The Board has resolved that:

1. The Authorised Capital of the Company may be increased to Rs 30 Crores on receipt of "In-Principle Approval" from the Reserve Bank of INDIA for registration as a Credit Information Company.

2. Immediately on receipt of the In-Principle Approval, the matter of enhancement of Authorised Share Capital be placed for approval of the shareholders in the General Meeting of the Company.

3. The Board has decided to issue Bonus Share in the ratio of 1 Share for every 4 shares to the Shareholders of the Company as on the record date, out of the Share Premium Account subject to approval by the Shareholders.

4. The Company has received a Non-Binding Share Subscription Letter of Intent from AMCO GROUP BERHAD, Malaysia to invest either directly or through or more nominees or assigns to the extent of Rs 12,37,75,000 by way of subscription to 24,75,500 Equity Shares subject to Obtaining "In-Principle Approval" from the Reserve Bank of India on its Application for Registration to continue Credit Referencing Business under The Credit Information Companies (Regulation) Act, 2005 and Due Diligence. The Board has taken this Non-Binding Letter of Intent on Record, and has decided to attach it along with its Application for Certificate of Registration with the Reserve Bank of India.

5. The Board has approved the Application for Certificate of Registration for acting as a Credit Information Company and will submit the same to the Reserve Bank of India.

6. The Company has entered into a Strategic Alliance with Data Talk (Statistical Solutions), UK to jointly develop Credit Scoring and Credit Referencing Models to address various market segments.

Source : Equity Bulls

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