KUALA LUMPUR (April 29): Prolexus Bhd fixed the issue price of its rights shares at a steep discount, at RM1 each and exercise price of warrants at RM1.20 each.

In a filing to the Bursa Malaysia today, Prolexus announced that the board has resolved to fix the issue price of the rights shares at RM1 each, which represents a discount of RM0.59 or approximately 37.1% to the theoretical ex-rights price (TERP) of Prolexus shares of approximately RM1.59.

This was calculated based on the five-day volume weighted average market price (VWAMP) of Prolexus shares up to and including yesterday, being the last trading day immediately preceding the price-fixing date, of RM1.88.

The board has also resolved to fix the exercise price of the warrants at RM1.20 each, which represents a discount of RM0.45 or approximately 27.3% to the TERP of Prolexus shares of approximately RM1.65.

The exercise ratio is one warrant to one share.

The exercise price was calculated based on the five-day VWAMP of Prolexus shares up to and including yesterday, being the last trading day immediately preceding the price-fixing date, of RM1.88.

On Dec 11, 2015, Prolexus proposed renounceable rights issue of up to 62.53 million new ordinary shares of 50 sen each in Prolexus (rights shares) together with up to 62.53 million free detachable warrants on the basis of one rights share together with one warrant for every two existing ordinary shares of 50 sen each held by the entitled shareholders.

The exercise was to raise gross proceeds of between RM55.5 million and RM62.5 million for construction of a new garment factory and setting up of a new fabric mill.