KUALA LUMPUR (Sept 30): Lion Industries Corp Bhd (LICB) has proposed a bonus issue of warrants in the form of one warrant for every two existing shares with a three-year maturity.

The warrants’ entitlement date and exercise price will be determined at a later date, LICB said.

Based on LCIB’s 680.8 million issued shares, the exercise will involve the issuance of up to 340.4 million warrants, Lion Industries said in a filing.

For illustrative purposes, LICB said that the indicative exercise price is at 35.4 sen apiece, a 20% premium to the five-day volume-weighted-average-market-price of its shares up to and including Sept 29 of 29.56 sen.

Based on the indicative price, the issuance would raise about RM120.5 million, assuming all 340.4 million warrants are exercised.

“Any proceeds to be raised (as and when the warrants are exercised) will be used to fund the group’s future working capital requirements such as the purchase of raw materials, staff costs, utilities, office-related expenses and rentals.

“The proceeds to be utilised for each component of working capital are subject to the operating requirement at the time of usage and therefore have not been determined at this juncture,” it added.

The bonus issue is subject to the requisite approvals of, among others, Bursa Securities and its shareholders at an extraordinary general meeting to be convened. LICB expects the listing of the warrants to be completed in 4Q2022.

AmInvestment Bank has been appointed as the adviser for the proposed bonus issue of the warrants.

Shares in LICB ended one sen or 3.45% higher at 30 sen on Friday (Sept 30), giving it a market capitalisation of RM215.37 million.