Thursday 28 Mar 2024
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KUALA LUMPUR (June 21): P.A. Resources Bhd has proposed to raise up to RM23.39 million via a private placement of up to 20% of its total issued shares to third party investor(s) to be identified later.

It said the proposed private placement enables it to raise funds for capital expenditure and working capital requirements for its aluminium extrusion and fabrication business. 

As at June 13, the total number of issued shares of PA Resources stood at 1.87 billion shares and 757.23 million outstanding Warrants B 2017/ 2022.

In a filing with Bursa Malaysia today, PA Resources said assuming that all the 757.23 million Warrants B are exercised prior to the implementation of the proposed private placement, a total of up to 525.53 million new shares, representing 20% of the 2.63 billion enlarged number of issued shares of PA Resources, may be issued.

It added that the issue price of the placement shares will be determined and fixed by the board of directors at a later date after receipt of all relevant approvals.

Based on the indicative issue price of 4.45 sen per placement share, which represents a 19.82% discount to the five-day volume weighted average market price of PA Resources shares as at June 13, the proposed private placement is expected to raise gross proceeds of between RM16.65 million and RM23.39 million. 

PA Resources noted that the proposed exercise is not expected to have any material effect on the group's earnings for the financial year ending June 30, 2019 as it is expected to be completed in the third quarter of this year.

PA Resources shares closed down 0.5 sen or 9.09% at 5 sen today, with 250,000 shares done, bringing a market capitalisation of RM93.52 million.


 

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