MAG proposes one warrant for four shares to raise RM84.9m


On July 15 this year, MAG Holdings had completed the acquisition of prawn aquaculture farm, North Cube Sdn Bhd which has 133 cultivation ponds and a prawn processing plant.

KUALA LUMPUR: Mag Holdings Bhd has proposed a bonus issue on the basis of one warrant for every four shares held which will enable it to raise RM84.90mil when the warranted are converted into shares.

Aquaculture-based MAG, formerly Xinghe Holdings Bhd, said on Thursday it the corporate exercise would involve one warrant C for every four shares. This would involve the issuance of up to 471.67 million warrants.

For illustrative purposes only, the exercise price of the warrants C is assumed to be at 18 sen each, or a discount of 10% to the five-day average of 20 sen per share.

“For illustration purposes, the gross proceeds to be raised upon full exercise of the warrants C based on the indicative exercise price is up to approximately RM84.90mil under the maximum scenario,” it said.

MAG said the proceeds would be used for working capital which may include purchase of prawn fries and prawn feed, administrative expenses such as staff expenses, rental expenses, transportation costs and utilities.

In late December 2019, the company had acquired a prawn aquaculture farm known as Wakuba Farm, a matured revenue-generating asset with 102 prawn cultivation ponds.

On July 15 this year, it had completed the acquisition of prawn aquaculture farm, North Cube Sdn Bhd which has 133 cultivation ponds and a prawn processing plant.

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