PETALING JAYA: SYF Resources Bhd proposed to undertake a renounceable rights issue exercise to raise up to RM85.83 million.
It will be undertaken on the basis of one rights share and one warrant for every two existing shares held at an issue price of 19 sen per rights share.
The issue price represents a discount of 4.19% of its five-day volume weighted average market price of 19.83 sen.
Meanwhile, the 19 sen exercise price for each warrant represents a 2.83% discount of the theoretical ex-rights price of 19.55 sen.
Proceeds raised from the rights issue exercise will be utilised for the repayment of bank borrowings and funding of existing and new development projects.
The exercise of the warrants in the future will allow SYF to obtain additional funds without incurring additional interest expenses from borrowings.
