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WE Holdings plans rights issue, buys Philippine firm

WE HOLDINGS on Monday said it is proposing a renounceable non-underwritten rights issue of up to 4.2 billion warrants at an issue price of S$0.001 per warrant, that could raise up to about S$16.7 million.

Each warrant will carry the right to subscribe for one new ordinary share of the company at an exercise price of S$0.003 per new share.

The proceeds from the warrant issue will be used towards enlarging the group's working capital and capital base, and enhancing the financial flexibility of the company to capitalise on potential growth and acquisition opportunities, WE Holdings said in a statement.

Separately, the company has acquired the entire issued capital - comprising 50,000 common shares - of Maritrans Recycler, an integrated environmental service provider incorporated in the Philippines, for a purchase consideration of no less than US$2 million, subject to the net tangible assets of Maritrans Recycler as at March 31, 2015.

The purchase consideration is to be satisfied by 50 per cent in cash and the remaining 50 per cent in shares.

"The proposed warrants issue is in line with our plans to explore the growth opportunities in the petroleum, oil and gas and related resources sector," said WE Holdings.