Annual Report 2019

165 Miramar Hotel and Investment Company, Limited Annual Report 2019 Notes to the Financial Statements 23 Total equity (Continued) (b) Share capital (continued) (ii) Bonus warrants On 10 June 2015, the Company announced a proposed bonus warrants issue on the basis of one warrant for every five shares held on the record date (i.e. 30 June 2015). 115,446,250 units of warrants were issued on 20 July 2015. Each warrant entitles the holder thereof to subscribe in cash for one share at the initial subscription price of HK$13.50 per share (subject to adjustments). The warrants are exercisable at any time during a period of thirty months commencing from the date of issue of the warrants (i.e. 20 July 2015). Details of the bonus warrants are disclosed in the Company’s announcements dated 10 June 2015 and 16 July 2015 and the Company’s circular dated 20 July 2015. During the year ended 31 December 2018, 62,381,877 units of warrants were exercised to subscribe for an aggregate of 62,381,877 shares in the Company. The new shares ranked pari passu in all respects with the then existing shares of the Company. On 19 January 2018 (the end of the warrants exercisable period), the remaining 1,717,807 units of outstanding warrants expired and the subscription rights attached to these warrants which have not been exercised were lapsed. No new bonus warrants have been issued since 19 January 2018. (c) Nature and purpose of reserves The capital reserve represents positive goodwill arose from acquisition of subsidiaries and associates prior to 1 January 2001 which was taken directly to equity on acquisition. The exchange reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations. The reserve is dealt with in accordance with the accounting policy set out in note 1(v). The application of the general reserve is in accordance with Article 117 of the Company’s Articles of Association. The investment revaluation reserve (non-recycling) comprises the cumulative net change in the fair value of equity investments designated at FVOCI under HKFRS 9 that are held at the end of the reporting period (see note 1(g)).