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The Board of Directors of Deap Capital Plc, a Lagos-based financial services provider, has proposed to convert the company’s debt worth N1.7 billion to ordinary shares of 50 kobo each to creditors.
Shareholders’ confirmation of the proposed actions at the company’s forthcoming Annual General Meeting will pave way for an increase in the company’s share outstanding by 850,000 units of shares to 2.3 billion shares from its current 1.5 billion shares.
The company is prepared to hold its 11th annual general meeting on August 22 to discuss different matters including its proposed change of name from Deap Capital Management and Trust Plc to Deap Plc, consideration of the company’s financial results between 2013 and 2018 among other matters.
Deap Capital also announced effected changes in its board of directors and management team. The company board which was reformed following the new board structure is made up of 7 people.
While the chairman and a non-executive member are returnees on the board after a five-year suspension, the other five are new members which according to the company secretary are made up of two people from the current board and 3 from a turnaround team setup to veer the company to a better track.
Analysis of the company’s financials for 9 months which ended June 2019 shows that the company experienced a downturn in its financials.
While it had no record of its total income for the year, the company whose financials recorded the same figures for its loss/ profit before tax, loss/ profit for the year and loss/ profit attributable to company owners recorded a 15 percent drop in its finances from N30.8 million in the corresponding period of 2018 to N26.2 million in 2019.
The company’s total assets valued at N438 million remained unchanged from the previous year, while its liability increased marginally by 100 basis points from N2.46 billion in 2018 to N2.49 billion in 2019.
The company’s operative license was suspended by the Securities and Exchange Commission (SEC) in 2014. According to the Nigerian stock exchange, the company’s market capitalization is valued at N660 million while its share outstanding stood at 1.5 billion units.
The financials further revealed that the company’s cash and cash equivalent valued at 56.7 million which was being managed by the Asset Management Corporation of Nigeria (AMCON) remained unchanged from the previous year, to the beginning of the year and the end of the year and will be used to pay off a part of the company’s debt.
Gbemi Faminu
