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Tee International Limited proposes bonus issue of warrants

TEE International Limited announced on Wednesday that it is proposing a bonus issue of up to 50.2 million free warrants on the basis of one bonus warrant for every 10 existing ordinary shares at an exercise price of S$0.215 payable in cash.

Each bonus warrant issued will carry the right to subscribe for one new share at its exercise price.

The exercise price of S$0.215 represents a premium of approximately 8.59 per cent to the volume weighted price of the shares of approximately S$0.198 for trades done on the Singapore Exchange on March 20, that being the last market day preceding the announcement date.

The bonus warrants are exercisable at any time during the period commencing on the date of issue and expire at 5 pm on the market day immediately preceding the 30th month after date of the bonus warrants issue.

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Based on the existing issued and paid-up share capital of the company of 50.2 million shares, and assuming that no new shares are allotted or issued, up to 50.2 million bonus warrants will be issued by the company.

If fully exercised, the issued share capital of the company would increase by up to 50.2 million new shares, representing 10 per cent of the company's existing issued share capital.

The company will receive gross proceeds of approximately S$10.79 million. The estimated net proceeds from the exercise of the bonus warrants, after deducting professional fees and related expenses of approximately S$0.06 million, is approximately S$10.73 million.

In a filing to the bourse, Tee International said that the bonus warrants issue is meant to "reward the shareholders for their loyalty and continuing support towards the company, and as a means to raise funds and provide additional financial flexibility to the group".