Thursday 28 Mar 2024
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KUALA LUMPUR (July 21): Key Alliance Group Bhd is planning to consolidate its shares on the basis of four existing shares into one share (4-to-1) to increase the company's profile and market interest in its stock.

In a filing with Bursa Malaysia today, Key Alliance said on completion of the proposed exercise, the theoretical market price of each share will increase by four times and the total number of shares in issue will be reduced by the corresponding ratio.

As at July 13, 2017, being the latest practicable date prior to the date of this announcement (LPD), the company's issued share capital was RM87.58 million comprising 1.7 billion shares.

For illustration, the 1.7 billion shares — assuming none of the outstanding convertible securities are exercised and/or converted into new shares — will be consolidated into 425.4 million consolidated shares pursuant to the exercise, said Key Alliance.

Further, based on the last transacted market price of shares as at the LPD of 4 sen, the theoretical adjusted reference share price of Key Alliance shares post-consolidation could be adjusted to 16 sen, said Key Alliance.

The exercise will also result in an adjustment to the reference price of its existing warrants, said Key Alliance.

For illustration, based on the last transacted market price of its Warrants A and Warrants B up to the LPD of 1 sen and 2 sen respectively, the theoretical adjusted reference price of Warrants A and Warrants B post-consolidation would be 4 sen and 8 sen respectively.

Key Alliance expects the proposals to be completed by the fourth quarter of 2017.

Shares in Key Alliance slid half sen or 12.5% to settle at 3.5 sen today, giving it a market capitalisation of RM59.56 million.

 

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