KUALA LUMPUR: Sarawak Consolidated Industries Bhd
’s (SCIB) shareholders have approved the issuance of free detachable warrants and the proposed reduction of its issued share capital at an extraordinary general meeting (EGM) held earlier today.
In a statement, SCIB said shareholders approved the proposed renounceable rights issue of up to 763.62 million new ordinary shares, together with an equal number of free detachable warrants.
The rights issue will be undertaken on the basis of one rights share and one warrant for every existing SCIB share held on an entitlement date to be determined.
In addition, shareholders approved the proposed reduction of the company’s issued share capital by RM110mil pursuant to Section 117 of the Companies Act 2016.
“We appreciate the confidence and mandate given by our shareholders. These approvals place SCIB in a better position to strengthen its balance sheet and support the Group’s planned activities in a disciplined and orderly manner,” executive chairman Datuk Chong Loong Men said.
The proposed rights issue with free warrants is expected to raise a minimum of RM10mil to meet the company’s funding requirements.
According to the circular to shareholders, the proceeds will be used mainly for the construction of a factory and the purchase of machinery, as well as for partial repayment of bank borrowings, working capital and expenses related to the proposals.
