Nigerian Enamelware Plc’s attempt to convert a significant shareholder’s debt to equity was denied by the Securities and Exchange Commission (SEC), the country’s top capital market regulator.
Also, the commission rejected the company’s attempt to issue bonus shares in conjunction with the debt conversion.
The company’s board of directors stated that the company’s capacity to resolve its unallotted shares prior to the deadline of December 31, 2022 was impacted by the rejection of the debt conversion and bonus issue.
The business disclosed in a regulatory filing that it has also chosen to withdraw from a new bonus issuance of three new common shares for every two common shares issued.
The Board of Directors also opted to certify the company’s financial statements following the regulatory rejection.