MTQ announces rights cum warrants issue to raise up to S$15.5m in net proceeds

MTQ Corporation has proposed a renounceable underwritten rights cum warrants issue of up to 61.81 million new ordinary shares at an issue price of 20 cents each.

Each rights issue also come with up to 15.45 million free detachable warrants. Each warrant carries the right to subscribe for one ordinary share in the capital of the company at an exercise price of 22 cents for each warrant share, on the basis of two rights shares for every five existing shares.

The estimated net proceeds arising from the proposed rights cum warrants issue is S$12.1 million. This will go up to S$15.5 million if the warrants are fully exercised.

UOB Kay Hian is the underwriter of the proposed rights cum warrants issue.

The proposed issue price of 20 cents per rights share represents a 50 per cent discount to the closing price of MTQ shares on Jan 30.

MTQ said on Tuesday that the aim of this fund-raising exercise is to strengthen its financial position by enlarging its capital base and provide it with greater flexibility to formulate and execute its business plans.