D'nonce Technology is involved in contract manufacturing.
KUALA LUMPUR: D'nonce Technology Bhd has proposed a rights issue including irredeemable convertible preference shares (ICPS) and free warrants to raise a minium of RM8mil to reduce its debts.
It said on Friday the corporate exercise included a renounceable rights issue of up to 315.10 million new shares and 315.10 million ICPS on the basis of one rights share and one ICPS for every one share held, together with 157.55 million free warrants.
This would be on the basis of one free warrant for every two rights shares and two ICPS subscribed.
D'nonce said it was in the midst of paring down the borrowings which have reduced from a high of RM90.75mil as at Aug 31, 2016 to RM65.10mil as at end 2018.
The proposed rights issue will further reduce the borrowings which will increase the profitability via the interest savings of up to RM2.05mil per annum.
The issue price of the ICPS is five sen each and the conversion price is 20 sen on the basis of four ICPS for every one share.
The company undertakes contract manufacturing services to support the hard disk drive industry and it also has cleanrooms to facilitate the HDD, electrical and electronics and medical devices industries.
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