The next step in the implementation of Yalco’s consolidation and restructuring plan was approved by the company’s general meeting of shareholders, paving the way for the strengthening of its capital base and the return of its net worth to positive territory.
Shareholders approved a share capital increase of €4.2 million through a contribution in kind of the Yalco Romania shares held by Pietaro. As part of the transaction, 26.25 million new Yalco shares will be issued, with Pietaro becoming a shareholder.
At the same time, an accounting reduction of the share capital by €6.07 million was approved, with the par value of the share reduced from €0.62 to €0.16, in order to offset losses from previous fiscal years and to restructure the company’s capital structure.
These decisions are part of Yalco’s broader restructuring plan, which includes, among other things, the write-off of liabilities amounting to €34.3 million, the capitalization of liabilities, and additional capital injections.
In this context, the company’s capital increase was also approved , involving a cash payment of up to €5 million, the waiver of existing shareholders’ preemptive rights, and the issuance of 31,250,000 new shares.It should be noted thatAVE has already announced its intention to participate, through its subsidiary AVE Participation Ltd, in a capital increase of the company in an amount of up to €5 million, subject to the completion of the relevant corporate approvals.
As noted in this regard, the share capital increase will enable the Company to resume trading of its shares on the regulated market, which will help restore investor confidence and create value for the benefit of shareholders. Consequently, the proposed restriction on preemptive rights is not intended to exclude or unjustifiably dilute the participation of other shareholders, but is inextricably linked to the company’s restructuring through the entry of new investors with the aim of ensuring the smooth continuation of the Company’s operations.
*See the General Meeting resolutions in the right-hand column "Related Materials."