KUALA LUMPUR (Dec 30): Solar District Cooling Group Bhd (KL:SDCG) has proposed a bonus issue of warrants on the basis of one free warrant for every two shares held in the building management systems company.

The proposed exercise involves the issuance of 211.91 million warrants, with a five-year tenure, according to a bourse filing on Tuesday. SDCG currently has 423.82 million shares in circulation and no outstanding warrants.

The bonus warrants could enable SDCG to raise up to RM169.53 million if fully exercised at an assumed exercise price of 80 sen, which is a 37.7% premium to its five-day volume-weighted average price, up to and including Dec 24, of 58.08 sen.

Proceeds will be used to fund the company’s working capital. The final exercise price of the proposed warrants will be determined later.

SDCG also proposed the establishment of an employees’ share option scheme (ESOS) of up to 10% of its share base.

The proposed bonus warrants and ESOS will require shareholders’ approval at an extraordinary general meeting to be held later.

Shares in SDCG ended unchanged at 54.5 sen on Tuesday, valuing the company at RM230.98 million.