Notes to the Financial Statements 30 June 2008 - Abterra

Notes to the Financial Statements30 June 200829. SHARE CAPITAL (CONT’D)• Conversion of all the Tranche 1 Notes during the financial year ended 30 June 2008 has resultedin 900,000,000 new ordinary shares of the Company at the conversion price of $0.05 per share.• Partial conversion of the Tranche 2 Notes during the financial year ended 30 June 2008 has resultedin 258,416,532 new ordinary shares of the Company at the conversion price of $0.065 per share.• On 18 April 2008, the Company had written off $40,244,613 accumulated losses of the Company as at30 June 2007 against its issued and fully paid share capital. This capital reduction exercise wasapproved by the shareholders of the Company in an extraordinary general meeting. The capitalreduction exercise has rationalised the balance sheet of the Company to reflect more reasonably thevalue of its underlying assets as well as the financial position of the Company.The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. Allordinary shares carry one vote per share without restriction.30. RESERVESGroupCompany2008 2007 2008 2007$’000 $’000 $’000 $’000Other reserves:- equity component of convertible notes 3,921 5,918 3,921 5,918Revaluation reserve 209 209 - -Foreign currency translation reserve 78 19 (3) 7Retained earnings / (accumulated losses) 18,717 (34,895) 13,446 (40,244)22,925 (28,749) 17,364 (34,319)ABTERRAAnnual Report 200891