KUALA LUMPUR (Oct 13): Palm oil mill manufacturer Dolphin International Bhd has decided not to proceed with a rights issue that it had proposed early this year for now, as it intends to relook into the exercise in its entirety and revise the utilisation of the proceeds to be raised.

In a filing with Bursa Malaysia on Friday, Dolphin said the decision came after taking into consideration the group’s recent financial performance, as well as the changes in its financial needs.

"As at the date of this announcement, the board of directors is still in the midst of finalising the intended use of the proceeds to be raised from the rights issue. When finalised, Dolphin will make an announcement to Bursa Securities on the variation to the rights issue and to also seek its shareholders’ approval for the variation," it added.

Pursuant to this, Dolphin, Mercury Securities (the managing underwriter and joint underwriter for the rights issue) and Kenanga Investment Bank Bhd (the joint underwriter) have mutually agreed to terminate the underwriting agreement entered into on Sept 18.

On Jan 11, 2023, Dolphin had announced plans to raise up to RM22.8 million via the proposed rights issue to pay deferred cash in relation to its acquisition of High Reserve F&B Sdn Bhd for RM36 million, for working capital, to repay bank borrowings and for future acquisition and/or investment in food and beverage related business.

The proposed exercise would entail the issuance of up to 253.51 million rights shares together with up to 152.1 million free detachable Warrants-C at an issue price of nine sen per rights share, on the basis of five rights shares together with three Warrants-C for every three consolidated shares held.

Dolphin shares closed up 0.5 sen or 2.44% at 21 sen on Friday, giving it a market capitalisation of RM28.1 million.