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Apsil plans another rights cum warrants issue; Q3 loss narrows

CATALIST-LISTED Asia-Pacific Strategic Investments Limited (Apsil) is planning another rights cum warrants issue to strength its financial position and capital base.

Separately, it also on Friday evening reported a smaller loss of S$819,000 for the third quarter, from a loss of S$1.1 million last year. Its revenue for the three months ended March 31 slipped 5.8 per cent to S$3.35 million.

Apsil said it plans to issue up to 47.93 billion shares which will come attached with free detachable warrants on the basis of two rights shares for every existing share.

The rights shares will be issued at 0.2 Singapore cent apiece - a discount of about 33.3 per cent to the last traded price of 0.3 Singapore cent. Each warrant will carry the right to subscribe for one new share at the the same price.

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The warrants are immediately detachable from the rights shares upon issue and will be listed and traded separately on the Catalist, said the firm.

Besides strengthening its capital base, the rights cum warrants issue will provide shareholders with an opportunity to further participate in the company's equity, it added.

Net proceeds, which will reach about S$95.6 million if all entitled shareholders subscribe and pay for their pro rata entitlements, will be used to fund its proposed expansion in the new business of real estate development in China, other expansion opportunities and for general working capital purposes.

As a result of the rights cum warrants issue, Apsil is making giving entitled warrant-holders additional warrants, and also revising downwards the exercise price of some of these previously issued warrants.

The latest issue comes only a few months after the firm issued some 7.8 billion rights shares cum warrants on Jan 31, raising net proceeds of about S$22.4 million, also for the purpose of strengthening its financial position.

The proposed rights cum warrants issue is subject to the approval of shareholders at an extraordinary general meeting to be convened.

April's shares last closed at 0.3 cent on April 28.