PETALING JAYA: Ewein Bhd has proposed to undertake a bonus issue of up to 75.4 million free warrants in Ewein on the basis of one warrant for every four existing ordinary shares in Ewein.
In a filing with Bursa Malaysia, the company said the proposed bonus issue of warrants could raise gross proceeds of up to RM60.32 million, based on the indicative exercise price of 80 sen per warrant.
“Such proceeds if raised, shall be utilised for the future working capital requirements of Ewein group, which include, among others, payment for trade and other payables, staff costs such as salaries, statutory contributions and employee benefits (including medical) and other operating expenses such as utilities,” it said.
The indicative exercise price of 80 sen per warrant represents a premium of 22 sen or 37.93% to the five-day volume weighted average market price of Ewein shares up to and including the latest practicable date for the announcement of 58 sen per share.
Based on the maximum scenario and assuming full exercise of the warrants at the indicative exercise price of 80 sen per warrant, a total of up to 75.4 million new shares would be issued.
The company said that the exercise price of the warrants will be determined at a later date. The tenure of the warrants will be three years, commencing from and inclusive of the warrant issue date.
In addition, Ewein has proposed to establish an executives’ share option scheme (ESOS) of up to 10% of the total number of issued shares for eligible executive directors and senior management of the group.
It has also proposed to establish a dividend reinvestment plan (DRP) that provides shareholders with an option to elect to reinvest in whole or in part, their cash dividend(s) declared by Ewein in new shares.
Ewein said that the proposed bonus issue of warrants is an appropriate avenue for rewarding its existing shareholders while the proposed ESOS is targeted at the executive directors whose experience and network are instrumental to the continuous growth and success of the business.
The proposed ESOS is also targeted at senior management of the group in view of their contribution to the growth and performance of the group, as well as to align their interest with the corporate goals and objectives of the group.
As for the proposed DRP, Ewein said it is part of the group’s capital management plans and is intended to strengthen Ewein’s capital position as any cash so retained within Ewein, that would otherwise be made payable by way of dividend(s), will be preserved to fund the group’s future working capital requirements.
Source: The Sun Daily