A-Sonic Aerospace proposes bonus issue of warrants

A-Sonic Aerospace is proposing a bonus issue of up to some 14.62 million warrants on the basis of one warrant for every four existing shares, which would see it raising gross proceeds of up to S$1.17 million.

Each warrant will entitle the warrant holder to subscribe for one new share in the company at an exercise price of S$0.08, which is a discount of 88 per cent to the last transacted price of S$0.665 per share on the Singapore Exchange (SGX) on May 25, the day before the announcement was made.

Assuming all the bonus warrants are fully exercised and converted into new shares, the gross proceeds will amount to S$1.17 million, and will be used towards general corporate and working capital purposes, said A-Sonic, which is on the SGX watch-list.

The bonus warrants are exercisable for a three month period from the date of issuance, after which any remaining unexercised warrants will lapse.

Based on the company's existing share capital of about 58.48 million shares, up to 14.62 million warrants will be issued by the company. Assuming the bonus warrants are fully exercised and converted into new shares, the company's issued share capital would increase to about 73.1 million shares.

The bonus warrants will be issued in line with the general share issue mandate approved by shareholders at the company's annual general meeting held last month.

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Explaining the rationale for the issuance, A-Sonic said that the bonus warrants are to reward shareholders for their support, as well as to improve the trading liquidity of the company's shares.

Shares in A-Sonic closed at 66.5 Singapore cents on Tuesday, up 4.5 Singapore cents or 7.26 per cent.