Mubasher: Yiaco Medical Company’s board of directors recommended trimming capital by KWD 16.48 million to KWD 1.71 million from KWD 18.19 million to amortise KWD 24.01 million accumulated losses as of 31 December 2018.
The loss amortisation will be implemented by using general reserves which amount to KWD 1.83 million, voluntary reserves worth KWD 1.31 million, and statutory reserves of KWD 4.38 million, according to a statement to Boursa Kuwait on Monday.
The firm will seek approval from regulatory authorities, and it will discuss reducing the board members to five from seven.
Upon completing the capital cut, the company’s capital will amount to KWD 1.71 million, while the value of voluntary reserves, statutory reserves, general reserves, and accumulated losses will be zero.
Earlier on Monday, Yiaco Medical Company announced a 37% year-on-year drop in profits during the first quarter of 2019 to KWD 104,000 from KWD 165,000 during Q1-18.
Boursa Kuwait also announced on Monday that it had suspended trading activities on the stocks of Ithmaar Holding, Yiaco Medical, and Al Massaleh Real Estate after the losses of these firms surpassed 75% of their capital.
In 2018, Yiaco’s losses tumbled 84.7% to KWD 1.366 million, against KWD 8.945 million a year ago.
