Acme proposes bonus issue, private placement

PETALING JAYA: Acme Holdings Bhd proposes a slew of corporate exercises including a of free warrants, private placement and the acquisition of two companies for RM22 million.

The plastic parts manufacturer and told Bursa that it is acquiring the entire stake in Medan Tropika Sdn Bhd and Focal Products Sdn Bhd for RM20 million and RM2 million, respectively.

Medan Tropika is the registered owner of two parcels of freehold development land in Penang, with an aggregate market value of RM36.6 million.

On the bonus issue, it entails the issuance of up to 59.68 million free warrants on the basis of one warrant for every four existing shares held.

The exercise price for the warrants is 25 sen. If the warrants are fully exercised, Acme could potentially raise up to RM14.92 million which will be used as working capital.

Meanwhile, the private placement entails the issuance of up to 89.53 million shares, representing up to 30% of the enlarged number of its issued shares.

Based on an indicative price of 24.26 sen per share, the group expects to raise between RM16.74 million and RM21.72, will be used for the acquisition of Medan Tropika.

Source: The Sun Daily

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