KUALA LUMPUR (Dec 18): Notion VTec Bhd proposed to issue up to 34.31 million free warrants on the basis of one warrant for every 10 existing shares owned in the hard disk drive manufacturer. Notion VTec said the free warrants are intended to reward its shareholders.

In a statement to Bursa Malaysia today, Notion VTec said it will issue new shares upon the exercise of the five-year warrants. Notion VTec said each warrant entitles the holder to subscribe for one new share at the relevant exercise price at any time during the exercise period.

"The exercise price of the warrants will be determined and announced at a later date by the board after obtaining the relevant approvals but before the entitlement date. The warrants may be exercised at any time within a period of five years commencing from and including the date of issuance of the warrants. Any warrants not exercised during the exercise period will thereafter lapse and cease to be valid.

"The warrants 2012/2017 previously issued by NVB (Notion VTec) has expired on May 2, 2017. After due consideration, the board is of the view that the proposed free warrants issue is an appropriate avenue to reward the shareholders of the company," Notion VTec said.

At Bursa Malaysia today, Notion VTec shares settled at 64 sen at 12:30pm for a market value of RM202.02 million. The stock saw some seven million shares traded.