Kuwait Yiaco Medicals shareholders approve loss amortisation, capital cut

Kuwait - The shareholders of Yiaco Medical Company approved amortising the company’s accumulated losses amounting to KWD 24.007 million during its extraordinary general meeting (EGM) on Tuesday.

The decision, reached by a majority vote, also approved reducing the company’s capital to about KWD 1.712 million, according to a bourse statement.

The amortisation process will be carried out by using the company's total reserve balance, totalling KWD 7.528 million, while the remaining losses, amounting to KWD 16.479 million, will be amortised by an equivalent capital cut.

Yiaco Medical further referred that no material impact has been seen on the company’s financial position to date as some related procedures have not been completed yet.

In November 2019, Kuwait’s Capital Markets Authority (CMA) approved cutting the company’s issued and paid-up capital by 90.6%.

It is worth remarking that during the first nine months of 2019, the company turned to profits worth KWD 231,270, against losses of KWD 1.37 million in the corresponding period in 2018.