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Second Chance Properties to undertake bonus issue of free warrants to subscribe for new shares

SECOND Chance Properties intends to undertake a proposed bonus issue of free warrants to subscribe for new shares in the company to raise a maximum of S$1.13 billion in gross proceeds.

Subject to approval from shareholders and regulatory authorities, the bonus warrants will be constituted by way of a deed poll and will be in registered form. The bonus warrants are proposed to be issued free to entitled shareholders on the basis of three bonus warrants for every one existing ordinary share in the issued capital of the company.

Each bonus warrant will give the warrantholder the right to subscribe in cash for one new share at an exercise price of S$0.25.

According to the company, the bonus warrants are being issued to "reward shareholders for their continuing support for and participation" in the company.

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The bonus warrants will provide shareholders with the flexibility and opportunity to increase their equity investment in the company, and may also raise funds for the group in the future and potentially increase its capital base and strengthen its balance sheet, said the company.

Based solely on the issued and paid-up share capital of the company of 755.03 million shares, up to 2.27 billion bonus warrants will be issued in the minimum case scenario. The full exercise of all the 2.27 billion bonus warrants would result in the issue of up to 2.27 billion new shares, representing 300 per cent of the company's issued and paid-up share capital to date.

In the maximum case scenario, the full exercise of such 4.51 billion bonus warrants would result in the issue of up to 4.51 billion new shares.

Under the minimum case scenario, the gross proceeds arising from the full exercise of the bonus warrants is approximately S$566.27 million. Under the maximum case scenario, the gross proceeds arising from the full exercise of the bonus warrants is approximately S$1.13 billion.

The proceeds may be used for strategic investments, repayment of borrowings or general working capital purposes of the group.