plc. Stark Corporation (STARK) disclosed yesterday The Board of Directors on December 21, 2022 resolved to approve management to determine the details of the financial management share repurchase project (treasury shares) when the company retained profits and cash in excess. After STARK’s share price continued to fall from 3.32 baht on December 9, 2022 to December 19, 2022, it fell 31% or decreased by 1.04 baht to close at 2.28 baht.
However, due to the company’s excess liquidity consisting of (1) cash flow from the company’s operations and (2) capital increase received from offering newly issued common stock to specific investors (Private Placement) , which provides for restrictions on the purpose of using the funds The company is evaluating the objectives and plans for using the new capital increase. And when all the details are complete, the information and results will be presented to the Board of Directors and the Shareholders’ Meeting for further consideration in accordance with the relevant laws.
Later this morning, STARK further clarified that The share repurchase program will be implemented out of excess cash from the Company’s operations in the presence of sufficient retained earnings. In an amount that does not exceed the Company’s unallocated profits in the separate financial statements. This is in line with the Company’s regulations and related laws.
Furthermore, having exercised its legal rights and the related contractual clauses for revocation of the LEONI Group share purchase contract, the Company no longer used the capital increase received from the PEO to carry out these transactions. But the company still has a policy of using that money for the best benefit of the company and the shareholders. Including expanding the business and strengthening the business operations of the company. The Board of Directors will present the guidelines for the use of the aforementioned amount to the shareholders’ meeting so that the shareholders can further evaluate the purposes of using the proceeds and plans for using the new capital increase in accordance with the relevant legislation.
