This article first appeared in The Edge Financial Daily on February 7, 2019

Vsolar Group Bhd (+ve)
TRADING of the shares in Vsolar Group Bhd (fundamental: 0.6/3, valuation: 0/3) triggered our momentum algorithm on Monday for the sixth time this year.

The counter closed 0.5 sen or 3.45% higher at 15 sen after 3.01 million shares were done, giving it a market capitalisation of RM55.98 million.

The group announced on Jan 29 it had obtained from Bursa Malaysia, via a letter dated Jan 29, approval for the company’s application for a second six-month extension until Aug 6 this year to implement its proposed rights issue with warrants.

Last July, it announced that it had sought and obtained a six-month extension that lasted until yesterday.

The cash call, proposed in October 2017, entails the issuance of up to 1.43 billion renounceable rights shares, together with up to 950.85 million free detachable warrants, on the basis of three rights shares for every existing Vsolar share held and two warrants for every three rights shares subscribed.

The proposal supersedes an earlier proposed issuance announced in September of up to 1.43 billion new irredeemable convertible preference shares and up to 237.71 million warrants.