Your directors have given very careful consideration as to what would be the best means of obtaining further capital, and having ascertained that it would be impossible to place a large issue of preference shares except on very oncrous terms, decided that the best means of procuring this extra capital was to issue 220,000 ordinary shares at a premium of Tls. 3 per share, i.e., at Tls. 6 per share.
the whole of this issue is taken up, the break-up price of the balance sheet will still exceed Tls. 9 per share, and as we have been able to get the new issue underwritten at Tls. 6, it was decided to recommend this course. It has been suggested that the same result might be obtained by making a new issue at par. This would, however, necessitate the issue of 440,000 new shares in order.to liquidate the company's overdraft, for which purpose the articles of the company would have to be altered to permit of this increase in the registered capital of the company. It is obviously more favourable to the company to issue a smaller number of shares at a pre
Text read from the printed page and cleaned; old type leaves the occasional error.