KUALA LUMPUR (Nov 13): Bird's nest company MyMBN Bhd (KL:MBN) has proposed a bonus issue of up to 193 million warrants, alongside an employees’ share option scheme (ESOS).

The warrants issue will see one bonus warrant issued for every two existing shares held, and will carry an exercise price of 19 sen, said the company in a bourse filing on Friday.

The exercise price represents a premium of 19.7% to MyMBN's five-day volume-weighted average market price of 15.88 sen up to Nov 2.

Based on the price, MyMBN could raise RM36.7 million in gross proceeds if all the warrants are fully exercised. The warrants have a tenure of three years,

The company said the proceeds will be used to meet working capital requirements, including the purchase of raw bird’s nests, staff salaries, operational and administrative expenses, and selling and distribution costs.

MyMBN, which processes and sells edible bird’s nests, said the warrant issuance would allow shareholders to participate in the company’s convertible securities, while potentially strengthening its capital base and providing additional working capital.

Meanwhile, the proposed ESOS involves the issuance of new shares of up to 30% of its total issued shares for eligible directors and employees of the company.

Assuming full exercise of the warrants and ESOS options, MyMBN’s issued shares could increase from 386 million to 752.7 million, the company noted.

MyMBN chief executive officer Lavern Chen Vun Wo is the company largest shareholder with a 33.6% stake.

The warrant issue and ESOS are subject to approval by Bursa Malaysia and shareholders, and are expected to be completed by the first quarter of 2027.

Mercury Securities Sdn Bhd has been appointed as principal adviser for the proposals.

MyMBN’s share price settled half a sen or 3.23% at 16 sen on Friday, giving the company a market capitalisation of RM62 million. The stock has risen over 50% since the start of this year.