Compugates proposes rights issue with warrants to raise RM30m

PETALING JAYA: Compugates Holdings Bhd (CHB) is proposing a renounceable rights issue of up to 304.9 million redeemable preferance shares (RPS) together with up to 304.9 million free detachable warrants to raise up to RM30.49 million.
This is on the basis of one RPS together with one warrant for every seven shares of 10 sen each in CHB.
"The proceeds to be raised, as and when the warrants are exercised, are proposed to be utilised for the working capital requirements of the CHB group, which include operating expenses and/or finance costs," CHB said in a filing with Bursa Malaysia yesterday.