25-May-2020:  Return of Capital

Yowie Group Ltd (ASX: YOW) advised this morning that it proposes a 4 cent per Share capital return to Shareholders (Capital Return). 
 
"The Capital Return will be subject to shareholder approval and a waiver being granted by the ASX in relation to ASX Listing Rule 7.25 to the extent necessary to permit the Company to undertake the return of capital. 

"To effect the Capital Return, the Company proposes to reduce its share capital by returning to Shareholders the amount of 4 cents per ordinary share held by each Shareholder at 7.00pm (EST) on Tuesday 30 June 2020 (Record Date). The terms of the return of capital are the same for each Shareholder.

"The Capital Return of 4 cents per ordinary share will be returned to relevant Shareholders by way of an equal reduction of capital under Chapter 2J.1 of the Corporations Act 2001 (Cth) (Corporations Act). The funds that will be used to make the payments to relevant Shareholders in respect of the Capital Return will be sourced from the Company’s existing cash reserves.

"What are the reasons for the Capital Return?

"The Board has undertaken a detailed review as to how it should manage the Company’s capital position going forward. The decision to propose the Capital Return reflects the Board’s consideration that the Company has surplus capital as at the end of April 2020 with just over US$11 million in cash, with a significant sum surplus to the Company’s working capital requirements.

"As shown in our announcement on 6 May 2020, your board continues to husband the company’s cash resources effectively.  
 
"This capital return will amount to about US$5.7 million out of the US$11 million which we currently have in cash." 

--- click on link above for further details ---

YOW has been up over +50% already today on the back of this news, and remains up over +48.65% (up 1.8cps to 5.5 cps) as I type this.  Well done to anybody who loaded up when they got down to just above 3c recently!!