Toyo Ink plans to issue free warrants

PETALING JAYA: Toyo Ink Group Bhd (TIGB) proposes to issue 53.5 million free warrants on the basis of one warrant for every two existing shares to raise money for future working capital.
Assuming full exercise of the warrants at the exercise price of RM1.50 per warrant, the company could potentially raise a maximum gross proceeds of RM80.25 million.
The proceeds will be for payment for trade and other payables, staff costs and other operating expense such as utilities, logistics and packaging materials among others.
The exercise is to reward shareholders as well as provide them an opportunity to further increase their equity participation and benefit from any potential capital appreciation arising from the exercise of the warrants.
The exercise will also strengthen its financial position with enhanced shareholders’ funds and enlarged capital base, which is expected to enhance the liquidity of TIGB shares.
The application to Bursa Securities in relation to the exercise is expected to be submitted within one month, while the issue is expected to be completed by the third quarter of 2018.