Crucial 2011 Annual Report Download - page 175

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25
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
On December 9, 2010, the board of directors approved to increase the Company’
s capital arising from the exercise by
employees of the stock options granted to them under the Employee Stock Option Plan (ESOP). Accordingly, the Company
issued 20,387 thousand shares at an issuance price of $10 per share. Also, the process for the registration thereof was
completed.
On December 15, 2009, the board of directors approved to increase the Company’
s capital through the issuance of 640
million company shares for cash at an issuance price of $22.5 per share. The capital surplus generated from this capital
increase amounted to $7,995,000 (after deducting commissions and offering expenses payable by the Company). The
proceeds from this capital increase were collected on February 6, 2010. Also, the process for the registration thereof was
completed.
On June 18, 2009, the board of directors approved to increase the Company’
s capital through the offering of Global
Depository Shares (GDSs). This offering was approved by the SFB on June 16, 2009. On August 4, 2009, the Company
issued 64 million GDSs at an issuance price of US$4.8757 per share, which were subsequently listed on the MTF market of
the LSE. Total issuance of GDSs amounted to US$312,045 thousand and each GDS offers the holder the right to receive 10
shares of the Company. On August 4, 2009, the net proceeds from this offering amounted to US$308,366 thousand or
$10,104,546 (after deducting commissions and offering expenses payable by the Company). The excess of the net proceeds
over the par value of the shares issued of $3,704,546 was recorded as capital surplus.
(Continued)
(h)
The stockholders approved a resolution during their meetings on June 29, 2005, and June 29, 2007, allowing the Company to
avail of the Income Tax Holiday for qualifying investment projects under Article 9 of the Statute for Upgrading Industries.
Therefore, the Company has availed of the five-
year Income Tax Holiday commencing from June 1, 2005 and January 1,
2006, for the taxable income that is derived only from the sale of products produced from its Fab-1 - Phases 2 and Fab-1 -
Phases 3 investment projects, respectively. In addition, on June 23, 2010 the Company was approved by Ministry of Finance,
R.O.C. to avail of the tax holiday commencing from January 1, 2011, from its Fab1 - Phase 4 and Fab- 2.
Duration of Income Tax Holiday
Inotera Fab-1－Phase 2 June 2005 to May 2010
Inotera Fab-1－Phase 3 January 2006 to December 2010
Inotera Fab-1－Phase 4 and Fab-2 January 2011 to December 2015
(17)
Stockholders’ Equity
(a)
Common stock