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KUALA LUMPUR (July 23): Two days after proposing a private placement of 15% of its shares to its founder Dr Abu Hasan Ismail, Prestariang Bhd today announced another cash call.

In a bourse filing, Prestariang said it is planning to raise a further RM35.37 million via a renounceable rights issue of ordinary shares with free detachable warrants.

The rights issue will involve up to 176.84 million new shares at an issue price of 20 sen per rights share, on the basis of one rights share for every three Prestariang shares held. The rights issue will come with free detachable warrants, on the basis of one warrant for every one rights share subscribed.

Together with the RM27.85 million injection agreed to by Abu Hasan on Tuesday, Prestariang is aiming to raise a total of RM63.22 million through the two corporate exercises.

Abu Hasan will take up a total of 79.58 million new shares or a 15% stake in the company at 35 sen per share with free detachable warrants on the basis of one warrant for every placement share.

Of the total proceeds raised, Prestariang said RM28.3 million will be used for working capital, RM17.51 million for business expansion for new product offerings and RM16.5 million for partial repayment of advances from directors as well as redemption of the redeemable secured loan stocks.

“Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposals are expected to be completed by the fourth quarter of 2020,” the group said.

As at July 20, being the latest practicable date for the corporate exercises, Abu Hasan did not hold any shares in the company.

As part of the corporate exercise, Prestariang said it is also establishing a long-term incentive plan, which comprises an employee share option scheme and share grant plan of up to 15% of the issued share capital of the company.

Shares of Prestariang closed one sen or 2% lower at 49.5 sen today, valuing the company at RM263 million. The stock has rebounded 330% from its recent low of 11.5 sen on March 19.

http://www.theedgemarkets.com/article/prestariang-seeks-raise-rm35m-through-oneforthree-rights-issue
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