PETALING JAYA: EA Technique (M) Bhd proposes a slew of corporate exercises, including the issuance of new shares and warrants as well as private placement.
The group told Bursa Malaysia that it will issue 121.62 million new shares for the settlement of the RM57.16 million debt owing to its major shareholder Sindora Bhd. The issue price for the settlement shares is 47 sen.
Upon completion of the debt capitalisation exercise, it will issue up to 106.36 million new placement shares representing about 17% of its enlarged total number of issued shares.
Some 19.15 million placement shares will be placed to EA Technique managing director Datuk Ir. Abdul Hak Md Amin; 25.53 million to Sindora; and the remaining up to 61.68 million to independent third party investors to be identified at a later date.
Based on the issue price of 47 sen, the proposed private placement is expected to raise gross proceeds of about RM50 million, which will be used to part finance the construction of three vessels and for working capital.
Recall that EA Technique was awarded a five-year contract with five extension options of one year each by PETCO Trading Labuan Company Ltd to provide three 9,000 deadweight tonnage size vessels for the provision of coastal vessel services on long-term time charter with a contract value of RM239.1 million.
EA Technique will also issue up to 365.99 million free warrants on the basis of one warrant for every two existing shares held.
Based on the exercise price of 55 sen per warrant, the proposed free warrants issue is expected to raise gross proceeds of RM201.3 million assuming full exercise of the warrants. The proceeds will be utilised as working capital to fund the day-to-day operations.
At the noon break, EA Technique’s share price gained 1.12% to 44 sen on 373,100 shares done.
