KUALA LUMPUR (Feb 4): Reservoir Link Energy Bhd has proposed a bonus issue of up to 71.25 million warrants on the basis of one warrant for every four existing shares.

The entitlement date and exercise price of the warrants will be determined later, the upstream oil and gas well related services provider said in a statement.

It said the bonus issue is not expected to raise immediate funds for the group as the warrants will be issued at no cost to the entitled shareholders.

Reservoir Link is also undertaking an employees’ share option scheme (ESOS) with the number of new shares allotted not exceeding 30% of total issued shares.

Upon the full exercise of the bonus issue and ESOS, the group’s enlarged share capital will increase to 441.8 million shares from 285 million shares currently.

“We are pleased to announce both corporate exercises of bonus issue and ESOS to reward our stakeholders for their continuous support,” Reservoir Link executive director, Thien Chiet Chai said in the statement.

“Furthermore, the increased capital through the exercise of warrants over the next five years will translate into additional working capital for future projects and subsequently improve share liquidity.

“In addition, these corporate exercises will provide our existing shareholders with an opportunity to increase their equity participation in our company,” he added.

Shares of Reservoir Link ended 3.5 sen or 7.45% higher at 50 sen today, for a market capitalisation of RM143.92 million.