Toshiba to Raise ¥600 Billion in Fresh Capital (News)
Tokyo, Nov. 19 (Jiji Press)—Toshiba Corp. said Sunday it will issue more than 2 billion new shares for third-party allotment on December 5 to raise ¥600 billion in fresh capital, an effort to remain listed on the Tokyo Stock Exchange.
The capital increase is a precautionary step in case the struggling Japanese electronics and machinery maker fails to sell its memory chip unit by the end of fiscal 2017, ending March 2018.
"The successful completion of the financing will remedy a negative consolidated balance sheet and enable Toshiba to avoid the delisting of its shares," the company said in a press release.
Toshiba posted a negative net worth of ¥552.9 billion at the end of March 2017 due to losses at its US nuclear operations, an amount expected to grow to ¥750 billion by the end of the fiscal year.
If a company listed on the TSE posts a second straight year of negative net worth, its shares will be delisted under the exchange's rules.[Copyright The Jiji Press, Ltd.]