Advanced Systems Automation’s Bold Rights Cum Warrants Issue Set to Shake Market
Advanced Systems Automation Limited (“Company”), a Singapore-incorporated firm, is making significant waves in the financial market with its latest announcement. The Company has proposed a renounceable non-underwritten rights cum warrants issue, offering three rights shares for every two existing shares held by entitled shareholders. Additionally, two warrants will be offered for every three rights shares subscribed, with fractional entitlements disregarded.
Key Details of the Rights Cum Warrants Issue
The Board of Directors has confirmed that the register of members and share transfer books will close on 26 November 2024, at 5.00 p.m. Singapore time. This Record Date is crucial for determining the provisional allotments of rights shares with warrants to eligible shareholders, including both entitled depositors and entitled scripholders.
Eligibility and Trading Details
Entitled Shareholders, comprising Entitled Depositors and Entitled Scripholders, will receive a notification letter with instructions to access the Offer Information Statement electronically. They can choose to accept, decline, or trade their provisional allotments on the Catalist of the SGX-ST during the prescribed trading period. Importantly, entitlements not taken up will be aggregated to satisfy applications for excess rights shares with warrants.
Shares will trade on a “cum-rights” basis until 22 November 2024 and switch to an “ex-rights” basis from 25 November 2024. This switch means anyone purchasing shares from 25 November 2024 will not be entitled to the rights shares with warrants.
Implications for Foreign Shareholders
For compliance reasons, the rights shares with warrants will not be offered to shareholders with registered addresses outside Singapore, unless they provide a Singapore address by a specified date. Thus, foreign shareholders will not receive provisional allotments, and their non-participation will see their rights redistributed among those applying for excess shares.
Supplementary Retirement Scheme (SRS) Investors
SRS Investors must use funds from their SRS accounts to pay for their rights and warrants, adhering to SRS rules. They must instruct their approved banks to process their provisional allotments and can deposit additional funds to cover shortfalls, subject to SRS contribution caps.
Investor Caution and Future Announcements
The Company advises shareholders and potential investors to exercise caution when trading its shares, as there is no certainty of the Rights Cum Warrants Issue materializing. Further details will be disseminated in the Offer Information Statement, with subsequent announcements to follow.
Disclaimer: This article is based on the latest announcements by Advanced Systems Automation Limited as of November 2024. Investors should consult financial advisors for personalized advice. The Company and its sponsor assume no responsibility for any inaccuracies.
