KINGSTON : May 11, 2005
CCMB Shareholders Give the Green Light to Company Expansion
Shareholders of Capital & Credit Merchant Bank Ltd. (CCMB) have approved the proposal of the Board of Directors, to increase the Company\’s Share Capital to $400 million, up from $300 million, by the creation of an additional 200,000,000 ordinary shares.
This was one of eight resolutions that received the affirmative vote of shareholders at the Bank\’s Annual General Meeting, which was held in Kingston on May 10, 2005 .
The decision was also taken to authorize the Board of Directors to make the rights issue renounceable to shareholders. The Directors have also been given the authority to determine the ratio of the rights issue, its record date and share price, its offer period and any other connected matter. A renounceable rights issue has the effect of expanding shareholders\’ rights, as they will have the ability to sell the subsequent shares to a third party.
CCMB Chairman, Ryland T. Campbell , emphasized that the rights issue is integral to Capital & Credit\’s prudent approach to the Bank\’s strategic expansion, long-term growth, development, and, ultimately, enhancement of shareholder value.
Earlier, CCMB President Curtis A. Martin spoke to the future prospects of the Bank and made it clear, that while its profits have grown by 32% in the first quarter of 2005, over the comparative period in 2004, the leadership of the Bank is undertaking several initiatives to ensure the preservation of capital, and expansion of the entity\’s value.
He pointed out that, as part of its Financial Revenue Strategy, the Bank\’s income stream will be diversified to ensure that fees provide 50% of total income over the long run. Additionally, Mr. Martin says, the Bank will continue to forge alliances, with a view to providing total financial solutions to clients and will seek to generate 50% of income from non-Jamaican assets.
Several shareholders at the meeting expressed confidence that Capital & Credit Merchant Bank has maintained its reputation of being financially focussed and CCMB\’s Chairman, Ryland Campbell announced that 2005 “will be a milestone year.”
