The Board of Directors of LCYT resolves to conduct capital reduction
The company has a total 153,085,000 outstanding common shares for the time being and plans to reduce the amount of capital by NT$153,085,000 by cancellation of 15,308,500 shares. The capital reduction ratio is approximately 10%, and there will be 137,776,500 common shares outstanding after refund of NT$1/share to shareholders. The amount of paid-in capital and the actual capital reduction ratio will be based on the total outstanding common shares as of the record date of the capital reduction and stock conversion in the calculation.
The capital reduction will result in a reduction of 100 shares for each 1,000 shares (1,000 shares in conversion for 900 shares) on the basis of the total number of issued common shares in the preceding paragraph. For the odd lot shares that is less than one share after capital reduction, shareholders may request the shareholder service agent of the Company to combine the odd lot shares into full one share 5 days prior to the record date of the capital reduction and stock conversion. If there is still a fraction of a share after the combination, such fractions will be settled by cash payment at the closing price in the centralized market on the record date of the capital reduction and stock conversion for replacement with new shares round to the nearest NT Dollar (no further rounding for amount less than NT$1). The Chairman shall be authorized to contact the designated party to purchase these fractions of shares at the closing price.
No physical share certificate will be issued for the replacement of new shares after the record date of the capital reduction and stock conversion, but the rights and obligations shall be identical with the original shares. The Board shall report to the Shareholders Meeting after approving the motion, and request the Shareholders Meeting to authorize the Chairman to set the record date of the capital reduction and that of exchange of shares after submitting the capital reduction case to the competent authority. In case of changes in the capital stock of the Company prior to the “the record date of the capital reduction”, or in case of change in the regulatory environment or under the instruction of the competent authority, or under any other changes in the objective environment that rectification shall be necessary, to the extent that the quantity of outstanding shares is affected that the amount for refund for each share and the capital reduction ratio shall be subject to change, we request the Shareholders Meeting to authorize the Chairman to respond to all these scenarios with full power of attorney.