KUALA LUMPUR (July 25): Mlabs Systems Bhd's (KL:MLAB) proposed rights issue with warrants to raise up to RM45.36 million was undersubscribed by 0.37%.

At the close of acceptance on July 18, the valid acceptances and excess applications totalled 216.6 million rights shares, representing 99.63% of the 217.41 million rights shares made available for subscription, the group said in a bourse filing on Thursday.

Mlabs, which is engaged in research and development in videoconferencing and mobile application solutions, received valid acceptances totalling 92.63 million shares or 42.61% of the total rights shares available, and excess applications for 123.97 million shares or 57.02% of the total rights shares available.

"In view that the rights issue is not fully subscribed, the board of directors has allotted the excess rights shares with warrants to the entitled shareholders, renouncee(s) and/or transferee(s) who have applied for excess rights shares with warrants in full based on their respective excess rights shares with warrants applications," it added.

On Oct 25 last year, Mlabs had proposed to undertake a renounceable rights issue of up to 283.48 million new shares on the basis of three rights shares for every one consolidated share, together with up to 113.39 million free detachable warrants (Warrants D) on the basis of two Warrants D for every five rights shares subscribed.

The group had fixed the issue price of the right shares at 16 sen each and the exercise price of warrants D at 16 sen each.

The rights shares with warrants are expected to be listed on the ACE Market of Bursa Malaysia on Aug 1.

Mlabs shares closed unchanged at 15.5 sen on Thursday, giving it a market capitalisation of RM43.61 million. Its share price has fallen 40.38% year to date.