KUALA LUMPUR (May 3): DGB Asia Bhd has proposed to undertake a one-for-two bonus issue of warrants to reward shareholders and to provide the group with additional working capital when the warrants are exercised in the future.

In a filing with Bursa Malaysia today, DGB said the proposed exercise entails up to 474.35 million DGB warrants (Warrants B).

It added that the board has fixed the exercise price of the Warrants B at 12 sen, which represents a premium of 10.7% to the five-day volume-weighted average market price of DGB shares as at May 2 of 10.84 sen.

"Assuming full exercise of up to 474.35 million Warrants B at the exercise price of 12 sen, the company will raise gross proceeds of RM56.92 million," it noted.

The proceeds will be used to finance the group’s day-to-day operations, including the working capital requirements.

The proposed bonus issue of warrants is expected to be completed by the third quarter of 2018.

DGB shares closed up 0.5 sen or 4.76% at 11 sen today, with 635,600 shares done, bringing it a market capitalisation of RM83.18 million.