Monday 02 Oct 2023
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KUALA LUMPUR (Feb 28): Ecoscience International Bhd has proposed the issuance of free warrants, on the basis of one warrant for every two existing shares held on an entitlement date to be announced later.

The palm oil milling services provider said the proposed warrant issuance will involve the distribution of up to 170 million warrants, at no cost, to entitled shareholders whose names appear in the record of depositors.

The exercise price of the warrants shall not be priced at a discount of more than 10% to the five-day volume weighted average market price (VWAMP) of Ecoscience shares up to and including the date prior to the price-fixing date.

“For the purpose of illustration only, assuming the indicative exercise price of the warrants is at 45 sen per warrant, this represents a discount of 4.81 sen or 9.66% to the said five-day VWAMP of Ecoscience shares,” said the group in a filing with Bursa Malaysia.

The gross proceeds to be raised upon full exercise of the warrants would be RM76.5 million, which would be used to fund its working capital requirements.

The exercise is expected to be completed by the third quarter of 2023.

Ecoscience’s share price has risen 55% from its initial public offering price of 30 sen. On Tuesday, the stock closed down one sen or 2.11% to 46.5 sen, giving it a market capitalisation of RM158.1 million.

Edited ByLiew Jia Teng
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