Comfort Gloves plans to issue free warrants
KUALA LUMPUR: Comfort Gloves Bhd has proposed to issue free warrants to its shareholders.
The warrants, convertible into new shares, would enable the company to raise as much as RM452.7mil for capital expenditure.
"The exact quantum of proceeds that may be raised by the Company will depend on the actual number of Warrants exercised during the five years tenure of Warrants," the glove maker said in Bursa Malaysia filing.
Comfort Gloves on Monday said it has proposed to issue three new warrants for every 10 ordinary shares in the company held on the entitlement date to be determined later.
The company said the exerc ise price of the free warrants would be fixed at a 20% premium of the stock's 5-day volume weighted average price (VWAP).
"Assuming all 174,132,912 Warrants are exercised at the assumed exercise price of RM2.60 each, the gross proceeds raised would be up to approximately RM452.75mil," it said.