KUALA LUMPUR (Feb 15): Sabah-based timber manufacturer Priceworth International Bhd has proposed a bonus issue of 801.81 million free warrants on the basis of one warrant for every two shares held.

The warrants’ entitlement date and exercise price will be determined at a later date, Priceworth said in a filing to Bursa Malaysia on Thursday.

The group said it intends to fix the exercise price at a premium range of 10% to 30% to the five-day volume weighted average market price immediately preceding the price-fixing date.

For illustrative purposes, the warrants are assumed to be fixed at an indicative exercise price of 13 sen each.

Based on that price and assuming the warrants are fully exercised, Priceworth will raise gross proceeds of up to RM104.24 million for working capital purposes.

As at Feb 8, the group's total issued share capital stood at RM457.73 million comprising 1.60 billion shares. Upon full exercise of the warrants, its share capital will increase to RM561.97 million comprising 2.41 billion shares, said Priceworth.

The bonus issue is expected to be completed by the second quarter of 2024. UOB KayHian has been appointed as the adviser for the proposed bonus issue of the warrants.

Priceworth had in September last year proposed a private placement to raise RM11.37 million, mainly to fund its working capital and timber reforestation.

Shares in Priceworth closed unchanged at 10 sen on Thursday, with a market capitalisation of RM160.36 million. The counter has dropped 28.57% year-to-date.