Myanmar Investments International Announces Proposal to Cancel Shares
Shares of Myanmar Investments International have fallen after the company announced its intention to propose the cancellation of shares and sell off remaining investments. MII cites costs and regulatory requirements as reasons for the decision.
Troy D. Hanson
November 09, 2023
Shares in Myanmar Investments International (MII) have experienced a significant decline following the company's announcement that it intends to propose the cancellation of its shares on AIM (Alternative Investment Market) to shareholders. As a result of this decision, MII also plans to sell off its remaining investments.
As of 0945 GMT, MII shares have fallen by 1.22 pence or 27%, reaching a price of 3.25 pence. The London-listed investment company, which focuses primarily on Myanmar, stated on Thursday that its current objective is to sell its remaining investments in an organized manner and distribute the net proceeds to its shareholders.
MII explained that the costs involved, as well as the legal and regulatory requirements associated with being listed on AIM, outweigh the benefits for the company. In addition, these factors hinder the company's ability to maximize distributions to its shareholders.
Although the board intends to dispose of its two remaining investments, they have recognized the uncertain timing of a sale. Therefore, directors believe it is necessary to conserve the company's cash reserves, which currently stands at $476,547.60 as of November 6th. By doing so, they can cover future operating expenses. Once the sale has been completed, directors will then assess the possibility of providing capital distributions to shareholders.
However, if the investments have not been sold before the company's cash reserves reach a level equivalent to one year's forecasted expenses, alternative funding options will need to be considered. These alternatives may include securing a loan from existing shareholders or arranging a placement of new shares with both shareholders and potential new investors.
Currently, MII shares have fallen by 0.41 pence or 9.2%, resulting in a price of 4.06 pence.