Ageson aborts rights issue of ICULS

Ageson aborts rights issue of ICULS
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KUALA LUMPUR (Oct 20): Ageson Bhd (formerly known as Prinsiptek Corp Bhd) has decided to scrap its proposed rights issue of irredeemable convertible unsecured loan stocks (ICULS).

This is due to the "expected longer time" required for the company to complete the rights issue, the small cap home builder and developer said in a bourse filing.

Ageson said it will explore an alternative avenue to raise funds expeditiously for its operational requirements.

The 10-year zero coupon rights issue, announced on Feb 26, involved up to 30.68 billion ICULS to raise as much as RM306.77 million.

On Aug 12, the company amended the cash-call terms to increase the amount to be raised to as much as RM319.55 million, through the issuance of up to 12.78 billion ICULS at an issue price of 2.5 sen each.

Of the amount, RM302.89 million was earmarked to part-finance a proposed mixed development project in Perak with an estimated gross development value of RM1.24 billion. Another RM15.16 million was to have been used to repay bank borrowings.

In March 2020, Ageson completed a rights issue of irredeemable convertible preference shares (ICPS). However, that rights issue was undersubscribed, with only 59.15% of the 6.53 billion ICPS available for subscription taken up.

Ageson's share price closed unchanged at nine sen on Wednesday (Oct 20), giving a market capitalisation of RM117 million.

S Kanagaraju