KUALA LUMPUR: Niche Capital Emas Holdings Bhd (NICE) has proposed to undertake a bonus issue of warrants, offering one warrant for every two existing ordinary shares held by entitled shareholders on an entitlement date to be determined later.
In a filing with Bursa Malaysia, NICE stated that the proposed bonus issue entails issuing up to 741.94 million warrants on this basis.
The company noted that the issuance will not generate immediate funds, as the warrants will be provided at no cost to shareholders.
Additionally, NICE has proposed a RM70 million share capital reduction under Section 117 of the Companies Act 2016, which would create a RM70 million credit to offset the company’s accumulated losses, with any remaining balance credited to retained earnings.
The company also plans a private placement of up to 20 per cent issued shares excluding treasury shares, which is expected to raise RM36.90 million.
This is expected to be allocated for its mining business (RM32.66 million), working capital (RM2.93 million), and expenses related to the proposals (RM1.30 million).
NICE said that the proposed exercise, among others, will allow existing shareholders to participate in the company’s convertible securities, which are tradable on Bursa Malaysia’s Main Market, without incurring any cost.
Meanwhile, the share capital reduction will help eliminate accumulated losses, and the private placement will strengthen the group’s capital base and shareholder equity.
The company reaffirmed its commitment to strengthening its position in the gold mining and mineral exploration industry through strategic expansion, continuous exploration, and operational improvements.
While optimistic about its growth prospects, NICE acknowledged uncertainties in the global and local economic landscape, including fluctuations in commodity prices, foreign exchange rates, and regulatory policies.
However, the company said it would adopt a prudent and disciplined approach in executing its expansion plans. - Bernama
