KUALA LUMPUR (March 11): Compugates Holdings Bhd has decided to abort its proposed rights issue with warrants, due to unfavourable market conditions.

In a filing with Bursa Malaysia, M&A Securities Sdn Bhd on behalf of the company, said its board had resolved today not to go ahead with the plan, as the unfavourable market conditions are not conducive for the implementation of the rights issue.

“As a result, the board has also resolved not to proceed with the proposed IASC (International Accounting Standards Committee) and proposed M&A (merger & acquisition) amendments,” it added.

On March 18 last year, Compugates had proposed to undertake a renounceable rights issue of up to 304.9 million redeemable preference shares (RPS), together with up to 304.9 million free detachable warrants, to raise up to RM30.49 million.

This is on the basis of one RPS together with one warrant for every seven shares of 10 sen each in CHB.

The company had said the proceeds, to be raised as and when the warrants are exercised, were to be utilised for the working capital requirements of the group.

Compugates closed half a sen or 10% lower at 4.5 sen today, for a market capitalisation of RM96.04 million.