KUALA LUMPUR (Nov 29): Ni Hsin Resources Bhd has proposed a bonus issue of warrants on the basis of one warrant for every two existing shares held (1-for-2) at an entitlement date to be fixed, to reward shareholders.

The proposed issuance will involve up to 160.76 million warrants, and will be implemented in a single tranche, Ni Hsin said in a stock exchange filing. 

The warrants' exercise price will be determined at a later date, on the receipt of all relevant approvals, Ni Hsin said, and will take into consideration the five-day volume weighted average price (5D-VWAP) of Ni Hsin shares, as well as prevailing market conditions.

For illustration, Ni Hsin said the warrants could have an exercise price of 15 sen apiece, which represents a discount of about 47.8% to the 5D-VWAP of Ni Hsin shares of 28.73 per share. 

The proposed exercise is not expected to raise immediate funds for the group, as the warrants will be issued at no cost to entitled shareholders, Ni Hsin added. 

Ni Hsin shares settled at 28.5 sen apiece today, giving the group a market capitalisation of RM83.70 million.