SGX rejects mDR's proposed rights cum warrants issue

THE Singapore Exchange (SGX) has rejected mainboard-listed mDR's application for a rights cum warrants issue as at Oct 25.

This was mainly because the rights and warrants issue implied a theoretical price for the underlying shares that was below the minimum trading price of 0.1 Singapore cent.

mDR, which distributes and sells mobile devices and services, had hoped to raise net proceeds of at least S$20.53 million, or a maximum of S$310.40 million if all shareholders were to subscribe for their entitlements to the rights cum warrants issue, after deducting expenses of about S$0.3 million.

This means that the company will have to find another way to raise this amount to pursue its growth strategy of diversifying its core businesses.

mDR had previously said that proceeds from the issue will strengthen the firm's balance sheet and allow the group to "seize opportunities for business growth through acquisition opportunities and expansion into other business areas as and when the opportunities arise".

In an SGX filing on Thursday, the group said that it will reconsider the terms of the rights cum warrants issue, and that it still intends to proceed with the proposed diversification of its businesses.