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Jubilee proposes four-to-one share consolidation
CATALIST-LISTED Jubilee Industries Holdings is proposing to consolidate every four existing ordinary shares in the company into one ordinary share, at a books closure date to be determined at later. Along with its announcement on Thursday night, Jubilee requested a lifting of the trading halt which it had called on Tuesday.
Corporate accretion services provider Accrelist, of which Jubilee is a subsidiary, had itself proposed a 20-to-1 share consolidation on Wednesday night.
Jubilee's consolidated shares will be traded on Catalist in lots of 100. The number of consolidated shares to which shareholders are entitled based on existing shares will be rounded down to the nearest whole, with fractions disregarded.
Jubilee believes the consolidation will generally be beneficial to the company and shareholders, taking into consideration the potential for reduced share price volatility and an increase in market interest and attractiveness. But shareholders should note that there is no assurance that this will be achieved.
As at May 30, Jubilee has an issued and paid-up share capital of about S$73.3 million comprising 1.03 billion shares. Assuming no new shares are issued, the consolidation will result in 256.9 million consolidated shares.
For the past six-month period from November 2018 to April 2019, and up to 29 May, the absolute price of Jubilee shares traded was between 2.5 Singapore cents and 3.6 Singapore cents. For the same period, the volume weighted average price (VWAP) was 3.3 Singapore cents. After the proposed consolidation, the theoretical adjusted VWAP of each consolidated share will be 13.2 Singapore cents.
Jubilee also has some 255.6 million unexercised warrants from a rights and warrants issued completed in March 2018. If the consolidation goes ahead, there will also be adjustments to the exercise price payable for each share upon the exercise of the warrants, and the number of warrants.
The proposed consolidation is subject to approval-in-principle from the Singapore Exchange and shareholder approval at an extraordinary general meeting to be convened.