Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 16): Wegmans Holdings Bhd has proposed to undertake a bonus issue of 125 million free warrants on the basis of one warrant for every four existing shares.

The exercise price of the warrants has been fixed at 30 sen per warrant, Wegmans said in a stock exchange filing today. 

This represents a discount of 9.91% to the five-day volume weighted average market price of its shares of 33.3 sen apiece as at Oct 15.

The entitlement date will be determined later, the filing said.  

Assuming full exercise of the warrants at the price of 30 sen each, Wegmans could raise maximum gross proceeds of RM37.50 million.

“Such proceeds if raised (as and when the warrants are exercised), shall be utilised for the future working capital requirements of Wegmans group, which include, among others, payment for trade and other payables, staff costs and other operating expenses such as utilities.

“The proceeds to be utilised for each component of working capital are subject to the Wegmans group’s operating requirements at the time of utilisation and therefore cannot be determined at this juncture,” the group said.

Assuming full exercise of the warrants, Wegmans’ share capital will be enlarged to RM89.45 million, from RM51.95 million as at Oct 15.

Shares of Wegmans closed five sen up, equivalent to a rise of 14.9% at 39 sen today, bringing a market capitalisation of RM192.5 million.

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