GSS Energy’s Bold Rights Issue Announcement Could Alter Market Dynamics

GSS Energy Limited has revealed a potentially market-moving development with its recent announcement of a proposed renounceable non-underwritten rights issue. The company plans to issue up to 607,222,761 new ordinary shares, with a listing and quotation notice received from the Singapore Exchange Securities Trading Limited (SGX-ST) on 22 November 2024.

Key Highlights of the Announcement

• The rights shares will be priced at S\$0.013 each, available on a basis of nine rights shares for every ten existing shares held by entitled shareholders as of the record date.
• In addition to the rights shares, GSS Energy will list up to 14,650,605 new ordinary shares, termed as “Additional Warrant Shares,” resulting from the exercise of additional warrants issued under a Warrants Adjustment.

Shareholders’ Considerations

Shareholders should be aware that the LQN from SGX-ST does not reflect the merits of the proposed rights issue or the company’s prospects. This announcement may have significant implications for the company’s share value, making it essential for shareholders to stay informed on any further developments.

The adjustment to warrants, as outlined in a deed poll dated 30 March 2022, may affect the number and/or exercise price of the outstanding warrants. The exact impact will depend on the number of outstanding warrants on the record date for the Warrants Adjustment. Shareholders can expect further announcements detailing these adjustments.

Executive Commentary

Yeung Kin Bond, Sydney, Group Chief Executive Director and Executive Director, issued the announcement, emphasizing the significance of the proposed rights issue to the company’s strategic goals.

Sponsor and SGX-ST Involvement

The announcement has been reviewed by the company’s sponsor, Evolve Capital Advisory Private Limited, though it has not been examined or approved by the SGX-ST, which assumes no responsibility for its contents.

Contact Information

For further inquiries, shareholders may contact Mr. Jerry Chua, a registered professional at Evolve Capital Advisory Private Limited, located at 160 Robinson Road, SBF Center, #20-01/02 Singapore 068914. He can be reached at (65) 6241 6626 or via email at jerrychua@evolvecapitalasia.com.

This article is intended to provide a summary of the announcement and does not constitute financial advice. Shareholders are encouraged to perform their own due diligence or consult with a financial advisor before making investment decisions.

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