AsiaBio shares fall 3.85% on proposed rights issue

PETALING JAYA: Asia Bioenergy Technologies Bhd's (AsiaBio) share price fell 3.85% this morning after it announced a proposed renounceable rights issue of up to 1.16 billion new irredeemable convertible preference shares (ICPS).
At 10.38am, the stock fell half a sen to 12.5 sen with a total of 1.12 million shares traded. Last Friday, the stock fell half a sen to close at 13 sen on some 14,300 shares changing hands.
The ACE Market-listed group told Bursa Malaysia last Friday that the rights issue comes together with the issuance of up to 116.32 million free detachable warrants on the basis of 10 ICPS together with one free warrant B for every five existing shares held.
Based on an illustrative issue price of 7 sen per ICPS, the proposed rights issue of ICPS with warrants is expected to raise up to RM81.43 million, which will be used for investments in VSolar Group Bhd rights shares, Focus Dynamics Group Bhd ICPS, working capital as well as companies listed or to be listed on the LEAP Market.