Kinetic Motor Company Ltd to issue CCCPS

Kinetic Motor Company Ltd has announced that the Board of Directors of the Company at its meeting held on November 24, 2007, has decided to issue 8,71,795 Nos. of Cumulative Compulsorily Convertible Preference Shares (CCCPS) having face value of Rs 39/- each to Billion Ally Ltd (BAL) on preferential basis, subject to obtaining required approvals. The said CCCPS shall be compulsorily convertible into one fully paid up equity share of Rs 10/- each within a period of 18 months from the date of allotment. Proceeds of the issue will be utilised to meet the requirement of funds for the development, production and launching of new Scooter model.

Earlier Board Resolution was passed to issue 8,71,795 Nos. of Cumulative Compulsorily Convertible Preference Shares (CCCPS) having face value of Rs 39/- each to Sanyang Industry Company Ltd (SYM). Approval of Members was also taken for the same.

Now Sanyang Industry Company Ltd (SYM) has informed the Company about subscription of the said CCCPS by Billion Ally Ltd a Wholly Owned Subsidiary of Sanyang Industry Company Ltd (SYM). Billion Ally Ltd (BAL) has also informed the Company it intention to subscribe the said CCCPS. Hence new resolution has been passed in the Board Meeting held on November 24, 2007.

Member's approval will be obtained to issue CCCPS to Billion Ally Ltd (BAL).

Source : Equity Bulls

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