H2G Green Limited Unveils Ambitious Warrant Issue to Fuel Growth
H2G Green Limited has announced a significant financial move with the proposal of a renounceable non-underwritten rights issue, involving up to 1,415,284,092 warrants. Each warrant is priced at S\$0.001 with an exercise price of S\$0.004 per new share, promising a substantial discount compared to the last traded share price on the Catalist Board of the SGX-ST.
Key Details of the Warrants Issue
The proposed warrants issue is structured on a one-for-one basis, allowing shareholders to subscribe for one new ordinary share per existing share. The exercise price reflects a 63.64% discount to the last traded price, with the combined issue and exercise prices offering a 54.55% discount. This move is geared towards enhancing the company’s financial position, enabling participation in more significant opportunities, and potentially increasing the liquidity of shares.
Shareholder Implications
Shareholders need to note that the warrants issue requires approval at an extraordinary general meeting (EGM). Once approved, the rights trading will commence, and the issuance cannot be retracted. The company emphasizes that the warrants issue does not fall within the general share issue mandate, hence requiring specific shareholder approval.
Potential Impact on Share Price
The warrant issue could potentially influence share price dynamics, given the significant discounts offered and the potential for increased share liquidity. The exercise of these warrants would potentially double the company’s share capital, affecting voting rights and share valuation.
Financial and Regulatory Considerations
Assuming full subscription and exercise, the company anticipates gross proceeds of approximately S\$5.66 million. These funds are intended for general working capital and exploring new business opportunities. The exercise of warrants would not trigger mandatory general offer obligations under the Take-over Code unless specific thresholds are crossed.
Intended Shareholder Participation
Major stakeholders, including Executive Director Lim Shao-Lin and Gashubunited Holding Private Limited, have shown their support through letters of intent to subscribe to their full entitlements, representing over 40% of the total warrants issue.
The company has not engaged in any equity fundraising in the past 12 months, reinforcing the strategic intent behind this warrants issue as a means to bolster financial flexibility and growth capacity.
Shareholders are encouraged to consider this opportunity carefully and remain updated through company announcements regarding the warrants issue.
