Shumba to issue new shares

SHARE   |   Monday, 09 January 2017   |   By Kabelo Adamson
Shumba to issue new shares

Shareholders of the Shumba Energy have given the company a waiver of pre-emptive rights on new issue of shares for the 2017 calendar year. Investors endorsed this decision during the company’s Annual General Meeting (AGM) which was held just before Christmas in Mauritius where Shumba Energy is also listed. According to the minutes from such meeting, the constitution of the company dictates that new shares shall be issued in accordance with the provisions of the Mauritius Companies Act 2001 and the directors shall first offer the shares to the existing shareholders in order to maintain the relative voting and distribution rights of the shareholders.

It was noted at the AGM that as in previous years, this waiver allowed the company to exercise its activities efficiently when carrying out its normal business of developing energy assets in Botswana and facilitated the effective funding of its projects. Other business that was conducted on the day included ratification of remuneration of directors of the company with shareholders approving $442,266 as fee for the directors from the initial $427,266. Sumba Energy directors, Thapelo Mokhathi, Sipho Alec Ziga, Alan Mitchell Clegg, Mashale Phumaphi, Munesh Sharma Ramnauth, Kapildeo Joory and Boikobo Paya were all re-appointed to their position until the next AGM.

The company has also at the AGM re-appointed Grant Thornton as its auditors until the next AGM while remuneration of Grant Thornton for $15, 950 is to be ratified and the directors were authorized to fix the remuneration of the auditors for the year 30 June 2017. Financial statements for the year ended 30 June 2016 were also part of the agenda and at the end it was resolved that audited financial results of such period be adopted. During the year, Shumba recorded comprehensive loss of $292, 336 compared with $139, 078 recorded in the previous year.