Datasonic proposes to issue one free warrant for every two shares

PETALING JAYA: Datasonic Group Bhd today said it proposes an issuance of 675 million warrants, on the basis of one warrant for every two shares in Datasonic.
The warrants will have a tenure of five years commencing from and including the date of the issue of the warrants.
The exercise price of the warrants will be determined and announced by the board at a later date, at a premium of not less than 15% of the theoretical ex-price of Datasonic shares.
For example if the exercise price for the warrants is assumed to be RM1.01 per warrant, which represents a premium of 16.07% to the five day volume weighted average market price of Datasonic shares of RM0.8702, the group will raise gross proceeds of RM681.75 million.
The gross proceeds to be raised, as and when the warrants are exercised, are expected to be utilised to fund the future working capital requirements of the group, which may include business development activities, project expenditures and other operating expenditures. Proceeds that are not immediately utilised will be placed in deposits with financial institutions and/or short term money market instruments.
Datasonic's share price closed 2.5 sen higher at 91.5 sen, with some 1.7 million shares changing hands.