KUALA LUMPUR (Jan 18):  Artroniq Bhd has proposed a bonus issue of 164.15 million free warrants, on the basis of one warrant for every two shares held.

The power cable and ICT products distributor said the entitlement date of the bonus issue would be determined at a later date.

In a bourse filing, Artroniq said the exercise price of the warrants has been fixed at 65 sen apiece, which represents a discount of about 19.4% to the five-day volume weighted average market price of Artroniq up to Jan 17 of 80.67 sen.

The group expects to raise gross proceeds of up to RM106.7 million upon full exercise of the warrants. The proceeds will be utilised for working capital requirements.

As of Jan 17, the group's total issued share capital stood at RM58.64 million comprising 328.3 million shares. Upon full exercise of the warrants, the share capital will increase to RM165.34 million comprising 492.45 million shares.

Artroniq said the bonus issue is expected to be completed by the first quarter of 2023.

Artroniq shares closed unchanged at 75 sen on Wednesday (Jan 18), bringing the group a market capitalisation of RM246 million.