Share Capital Reduction Effective

In brief · summary, not quotable

Power Metal Resources PLC has announced the effective reduction of its share capital, a process approved by shareholders and confirmed by the High Court of Justice. This reduction, which became effective on December 20, 2025, following registration at Companies House, aims to create distributable reserves for future corporate flexibility and distributions. Importantly, the reduction has not altered the total number of ordinary shares in issue, which remains 115,610,437, nor has it impacted their nominal value or associated rights. The change primarily affects the accounting treatment of the company's share premium account and capital redemption reserve.

Full announcement

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Power Metal Resources PLC (AIM:POW) is a London listed natural resources exploration company and project incubator with a global project portfolio. On 19 September, the Company announced its intention to reduce its share capital ("Reduction"). On 10 November the Reduction was approved by special resolution of the shareholders at the Company's General Meeting, and on 9 December 2025, the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), (the "Court") made an order ("Order") confirming the Reduction under Section 641 of the Companies Act 2006. The purpose of the Reduction was to create distributable reserves to provide the Company with flexibility for future distributions and corporate purposes.

Registration at Companies House

On 20 December 2025, the Order confirming the Reduction, a statement of capital approved by the Court, and an amended version of the Company's Articles of Association was registered at Companies House, in accordance with section 649 of the Companies Act 2006 and, accordingly, the Reduction is now effective.

The Reduction has not affected the number of ordinary shares ("Ordinary Shares") in issue, which is still 115,610,437, nor has it affected their nominal value or the rights attaching to them. The change relates to the accounting treatment of the Company's share premium account and capital redemption reserve.

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.