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Envictus International proposes rights cum warrants issue of up to 113.5m new shares

ENVICTUS International Holdings announced that the company is undertaking a rights cum warrants issue of up to 113.5 million new shares at an issue price of S$0.16 for each rights share with up to 113.5 million free detachable warrants.

Each warrant carries the right to subscribe for one new ordinary share at an exercise price of S$0.16, on the basis of four rights shares for every five existing shares held by entitled shareholders as at the books closure date, and one warrant for every one rights share subscribed.

The issue price of S$0.16 per rights share and exercise price of S$0.16 per warrant share represent a discount of approximately 56.76 per cent to the last traded price of S$0.37 for shares traded on June 14, 2018, being the last full market day before the announcement.

In the event of the maximum subscription scenario, the issue will raise approximately $18.17 million. After deducting estimated expenses of approximately S$0.25 million, it will amount to approximately S$17.92 million.

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The undertaking shareholders will subscribe and pay for all their entitlement of an aggregate of 31.6 million rights shares by the closing date of the rights cum warrants issue, subject to the granting of the whitewash waiver being granted by the Securities Industry Council, amongst other conditions.

In a filing to the bourse, Envictus said that it is undertaking the rights cum warrants issue to strengthen the financial position and capital base of the group and provide shareholders with an opportunity to further participate in the equity of the company.

The net proceeds arising from the allotment and issuance of the rights shares (without taking into account the proceeds from the exercise of the warrants) will be used towards repayment of bank borrowings, working capital and to fund the expansion of the group’s existing businesses, which include the construction of a factory in Pulau Indah for the manufacturing of condensed milk and the expansion of the Texas Chicken business in Indonesia and San Francisco coffee outlets in Malaysia.