Gabungan AQRS proposes 1-for-4 bonus issue of Warrants B

KUALA LUMPUR (June 26): Gabungan AQRS Bhd has proposed to undertake a bonus issue of Warrants B on the basis of one Warrant B for every four existing shares held to reward existing shareholders and to raise additional working capital, when Warrants B are exercised in future.

The exercise price and entitlement date will be announced later.

In a filing with Bursa Malaysia yesterday, the property developer and construction outfit said the actual number of Warrants B to be issued pursuant to the proposed exercise will depend on the total number of issued Gabungan AQRS shares as at the entitlement date. 

Assuming full exercise of Warrants B at the illustrative exercise price of RM1 per Warrant B, a total of up to 142.34 million new Gabungan AQRS shares would be issued and the company could potentially raise a maximum gross proceeds of RM142.34 million.

It intends to use the funds for working capital, which include payment for trade and other payables, staff costs and other operating expenses.

"Barring any unforeseen circumstances, the proposed bonus issue of warrants is expected to be completed by the fourth quarter of 2018," Gabungan AQRS said.

“With our strong fundamentals and expectations of improving financial performance, I hope that both shareholders and as well as the group would be able to benefit from this exercise,” said Gabungan AQRS group chief executive officer Datuk Azizan Jaafar.

Gabungan AQRS shares rose 6 sen or 5.26% to close at RM1.20 yesterday, giving it a market capitalisation of RM570.56 million. — theedgemarkets.com

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