Advanced Systems Automation Announces Rights Cum Warrants Issue: Potential Market Volatility Ahead

Advanced Systems Automation Limited has unveiled a strategic financial maneuver through a Proposed Renounceable Non-Underwritten Rights Cum Warrants Issue. This bold move could significantly impact the company’s stock market dynamics in the upcoming weeks.

Key Highlights of the Rights Cum Warrants Issue

• The issue is set on the basis of three Rights Shares for every two existing shares held, with two Warrants for every three Rights Shares subscribed.
• The Offer Information Statement was lodged on 27 November 2024, with the trading period for Nil-Paid Rights commencing on 29 November 2024 at 9.00 a.m.
• Entitled shareholders will receive electronic notifications, with no printed Offer Information Statements being dispatched, in line with the Electronic Dissemination Measures.
• The last date for acceptance and payment for Rights Shares with Warrants is 13 December 2024, with the issuance and trading of these shares expected around 20 to 23 December 2024.

Important Considerations for Shareholders

Shareholders should be aware that the offer is exclusively made in Singapore, restricting foreign participation. This exclusivity could influence share liquidity and volatility. Shareholders are also advised to follow detailed procedures for accepting or applying for shares, with specific instructions for different types of investors, including those holding shares through CPF Investment Accounts or SRS Accounts.

The trading period for Nil-Paid Rights on the Catalist could lead to increased market activity and potential volatility. Shareholders who wish to sell during this period should be aware of the procedures in place to ensure smooth transactions.

Potential Market Impact

This financial initiative is strategically designed to raise capital, potentially affecting the share value of Advanced Systems Automation Limited. Shareholders and potential investors should exercise caution, as the market may react to these developments with fluctuations in share prices.

As the company progresses with this Rights Cum Warrants Issue, it remains crucial for stakeholders to stay informed of further announcements and market responses.

Disclaimer

This article is intended for informational purposes only and should not be construed as financial advice. Shareholders and potential investors are advised to consult with their financial advisors to understand the implications of the Rights Cum Warrants Issue on their investment decisions.

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