KUALA LUMPUR (Aug 24): Adventa Bhd plans to vary the terms of its proposed renounceable rights issue of new irredeemable convertible preference shares (rights ICPS) with free warrants, to a basis and issue price to be determined and announced later.

The proposed rights issue, which was originally on a three-for-five basis at 55 sen apiece, was announced in January to raise up to RM50.42 million for business expansion. The rights issue came with an attached warrant — exercisable at 65 sen — for every two rights shares subscribed.

But in July, the group announced the proposed corporate exercise has been postponed indefinitely amid a legal proceeding between its managing director Low Chin Guan and Top Glove Corp Bhd.

In its stock exchange filing today, the group said the proposed rights ICPS will raise gross proceeds of up to RM50 million.

While the the issue price and new entitlement basis have not been fixed at this juncture, it said it shall be priced at a discount of not more than 10% to the five-market day volume weighted average price of Adventa shares immediately preceding the price-fixing date.

In conjunction with proposed rights ICPS with warrants, Adventa said it would also make an application to exempt Low and persons acting in concert with him from being obligated to undertake a mandatory offer for the remaining Adventa shares not already owned by them on the subsequent conversion of the rights ICPS and the exercise of the rights warrants into new Adventa shares.

As at Aug 21, Low and his persons acting in concert hold 66.41 million Adventa shares, representing approximately 43.46% of its issued capital.

Adventa expects to complete the proposals in the first quarter of 2019.

Adventa’s shares closed down 0.5 sen or one percent to 49.5 sen, for a market capitalisation of RM75.63 million.