Cornerstone Insurance Plc has said its board of directors has hit on a decision in respect of a proposed issuance of bonus shares to its customers.
This being one of the measures of the insurer’s to meet the new recapitalisation requirement that was set by the National Insurance Commission, NAICOM.
In a notice sent to the Nigerian Stock Exchange, Thursday, the insurance firm stated that the resolution on bonus shares is one of many other resolutions that were reached when its board of directors met on July 22nd.
According to the detail of the proposed issuance, the bonus shares will be issued in the proportion of seven new shares for every thirty shares of fifty kobo each, already held by shareholders. Part of the statement by the company said:
“In line with Rule 19.2 (a) of the Issuers Rules Relating to Board Meetings and General Meetings of Issuers, Cornerstone Insurance PLC (“The Company”) wishes to inform its esteemed Shareholders, Stakeholders, The Nigerian Stock Exchange (“The Exchange”) and the general public that at the Board Meeting of the Company held on July 22, 2020, the following resolutions were duly considered and approved…
“The transfer of One Billion, Seven Hundred and Eighteen Million (₦1,718,000,000) from the Company’s share premium account to the share capital account by issuing bonus shares in the proportion of seven (7) new shares of fifty Kobo each for every thirty (30) existing shares of fifty kobo each, to achieve the Company’s recapitalization plan.”
It should be noted that planned bonus share issuance is subject to shareholders’ approval during the company’s next Annual General Meeting