Paramount Trading Jamaica Limited is seeking to redeem and suspend from trading its 8.75-per cent cumulative redeemable fixed-rate preference shares due 2021.
Currently, the shares value JM$2.00.
On April 8, 2021, company directors announced the redemption and delisting of the shares effective April 12, 2021, in accordance with Jamaica Stock Exchange rules.
Paramount suspended trading of the shares on the date of its notice, following the close of market.
The company said that all redemption payments for the preference shares will be made to holders by the Registrar to the Company, Jamaica Central Securities Depositary (JCSD) on or after the maturity date, which is the 12 April 2021.
In 2019, the company raised JM$300 million issue when it invited subscriptions for 150 million 8.75 per cent fixed-rate preference shares. With the funds, Paramount upgraded and expanded its chemical-manufacturing operations.
At the time, Chief Executive Officer Hugh Graham said the inflow would be used for the completion of Paramount’s oil-blending plant, the bleach-manufacturing operation, and the continued upgrade of its software infrastructure.
Paramount Trading operates from six premises including East Bell Road, Waltham Park Road, and Spanish Town Road in St Andrew, Jamaica.
The company is a distributor of raw chemicals to local manufacturers. It has partnered with Allegheny Petroleum in the USA to manufacture a line of oils and lubricants, a precursor to the establishment of its new blending plant.
Paramount is also a manufacturer and distributor of food, beverage and pharmaceutical ingredients to local food manufacturers.
For the six months ended November 30, 2020, the company reported net profit of JM$19.7 million, almost half of JM$39.5 million earned in November 2019.
Revenue of JM$668.6 million declined by JM$99.6 million below revenues for the first six months of 2019.
Finance costs of JM$25 million reflected a 31 per cent increase year-on-year.
Management described the period as a time of “unprecedented” challenges, but said that the company would remain focused on its growth plans.