The ACE Market-listed company told Bursa Malaysia that it proposed a renounceable rights issue of up to 990.59 million new shares together with free detachable warrants on the basis of two rights shares together with a free Warrant E for every existing Sanichi share held on an entitlement date to be determined later.
Based on the illustrative issue price of 10 sen per rights share, Sanichi will raise between RM10mil and RM99.06mil. (The counter closed half a sen higher at 16.5 sen on Monday with 1.2 million shares changing hands.)
Sanichi, which began diversifying into property development and property investment in June 2014, said the proceeds would be used mainly to acquire identified landbank at strategic locations in Malaysia and/or to enter into joint ventures with land owner(s) to jointly develop their land for a percentage of the development profit.
The company said it was still in the midst of identifying the suitable landbank.
The proposed rights issue with warrants is expected to be completed by the first quarter of 2018.
For the 12-month period to June 30, 2017, the company posted a net loss of RM3.42mil compared with a net profit of RM3.78mil in the previous corresponding period. In August, Sanichi changed its financial year end from June 30 to Dec 31.
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