Advanced Systems Automation Announces Bold Fundraising Strategy with Rights Cum Warrants Issue
Advanced Systems Automation Limited has unveiled an ambitious fundraising plan through a proposed renounceable non-underwritten rights cum warrants issue, a strategic move aimed at fortifying its financial standing and supporting its recent acquisition activities.
Key Highlights of the Proposal
The company’s board has proposed issuing up to 1,093,521,189 new ordinary shares at S\$0.005 each, accompanied by up to 729,014,126 free detachable warrants. These warrants allow holders to purchase additional shares at an exercise price of S\$0.003. The rights issue will offer three rights shares for every two existing shares held, along with two warrants for every three rights shares subscribed.
Shareholder Impact and Potential Price Sensitivity
This initiative represents a significant opportunity for current shareholders to increase their investment at a discounted rate, with the issue price representing a 73.7% discount to the last traded price. The exercise price is also notably discounted by 84.2%, potentially impacting market perceptions and share values.
Purpose and Utilization of Funds
The funds raised will be directed towards settling outstanding professional fees and cash considerations from the LSO Acquisition, as well as bolstering the company’s working capital. This move is designed to enhance the Group’s financial resilience amidst existing capital requirements.
Entitlement and Participation Details
Entitled shareholders will receive provisional allocations based on their holdings as of the record date. The company has outlined specific eligibility criteria for participation, including provisions for shareholders using CPF or SRS accounts and those residing outside Singapore.
Director and Shareholder Interests
The directors and substantial shareholders are noted to have no personal stakes in this issue beyond their existing roles, ensuring transparency in the initiative’s execution.
The company will seek shareholder approval at an upcoming extraordinary general meeting, with further details to be disseminated through official channels.
Conclusion
This rights cum warrants issue represents a pivotal moment for Advanced Systems Automation Limited, offering shareholders a unique opportunity to expand their investment while supporting the company’s strategic growth initiatives.
Disclaimer: This article is based on publicly available information and does not constitute financial advice. Shareholders and potential investors should exercise caution and consult with their financial advisors before making investment decisions.
