Axington extends offer period for rights issue

CATALIST-LISTED Axington is extending the offer period for its rights issue, the professional advisory services group announced late on Sunday night.

Among other things, the deadline for the acceptance of and payment for the rights shares, as well as the application and payment for the excess rights shares was set for 5pm on Sept 9, or 9.30pm that day for electronic applications.

In addition, the last date and time for splitting the rights and trading of nil-paid rights was Sept 3 at 5pm.

On Aug 26, the company requested a trading halt in its shares.

This was followed by a request on Aug 31 to voluntarily suspend the trading of its shares, pending announcements related to "strategic changes" to be made in the business direction of the company.

Axington intends to re-commence trading of the nil-paid rights, and extend trading of the nil-paid rights, as well as the aforementioned deadlines until such time when its shares resume trading, it said.

"The extension will provide shareholders with time to consider the action they should take, as well as the opportunity to trade in the nil-paid rights after the resumption of trading of the shares from the suspension, and prior to making any acceptance and/or application for the rights shares and excess rights shares," the company said.

Axington previously proposed a renounceable non-underwritten rights issue of up to around 95.2 million new ordinary shares at 10 Singapore cents per share, on a one-for-two basis, to raise an estimated S$9.4 million.

The rights issue price represents a 52.7 per cent discount to the volume-weighted average price of 21.1 cents for trades on the Singapore Exchange on July 13.

Last Friday, the two-man board of Axington said that the planned rights issue announced on Aug 21 will proceed as planned, despite the recent controversy that resulted in five directors quitting the board.

Shares in Axington last traded at S$0.19 on Aug 25.