Adventa defers proposed rights issue

PETALING JAYA: Adventa Bhd has deferred its rights issue plan after its major shareholder and managing director Low Chin Guan said he is not in a position to provide an undertaking for the fundraising exercise amid legal proceedings against him by Top Glove Corp Bhd.
"In view of the above, the board resolves to defer the proposed rights issue. Adventa will make further announcements in the event there are material developments," according to Adventa's filing with Bursa Malaysia.
In a separate announcement, Adventa clarified that the group and its subsidiaries are not involved in the legal proceedings between Low and Top Glove.
Adventa's share price declined 4.5 sen or 8.3% to close at 5 sen today on 430,000 shares done.
Last January, Adventa announced a plan to undertakea a right issue exercise on the basis of three rights shares for every three shares as well as one free warrant for every two rights shares subscribed. The rights issue was to raise RM50.42 million for business expansion and working capital.
The group proposed to procure irrevocable undertakings from Low to subscribe for his rights entitlements and all the remaining rights shares which have not been subscribed.