KUALA LUMPUR (Feb 20): NOTION VTEC BHD [], which posted net losses of RM4.83million in the first quarter ended Dec 31, 2011, proposed a bonus issue of up to 138.91 million new shares on the basis of three new shares for every fourshares held.
The company said on Monday, it also proposed to issue up to 46.30 million free warrants (Warrants-B) on the basis of one Warrant-B for every four existing shares held by the shareholders.
Notion VTec said the proposed bonus issue was the most appropriate move for it to increase the capital base of the company to a level which will better reflect the group’s current scale of operations and reward the shareholders.
It added the proposed free warrants issue would enable shareholders to increase their participation in the equity of the company at a pre-determined exercise price during the tenure of Warrants-B and allow them to further participate in the future growth of the Company when the Warrants-B are exercised.
“In addition, the proceeds from the exercise of the Warrants-B will further strengthen the capital base of the company and will enable the company to raise funds without incurring interest cost, as compared to bank borrowings and to improve the gearing of the Notion VTec Bhd group,” it said.
Meanwhile, in a separate announcement on Monday, it reported net losses of RM4.83million in the first quarter ended Dec 31, 2011 compared with net profit of RM13.41 million a year ago.
Its revenue fell 33.9% to RM39.63 million from RM59.98 million. Its loss per share was 3.13 sen compared with earnings per share of 8.79 sen.
The company said on Monday, it also proposed to issue up to 46.30 million free warrants (Warrants-B) on the basis of one Warrant-B for every four existing shares held by the shareholders.
Notion VTec said the proposed bonus issue was the most appropriate move for it to increase the capital base of the company to a level which will better reflect the group’s current scale of operations and reward the shareholders.
It added the proposed free warrants issue would enable shareholders to increase their participation in the equity of the company at a pre-determined exercise price during the tenure of Warrants-B and allow them to further participate in the future growth of the Company when the Warrants-B are exercised.
“In addition, the proceeds from the exercise of the Warrants-B will further strengthen the capital base of the company and will enable the company to raise funds without incurring interest cost, as compared to bank borrowings and to improve the gearing of the Notion VTec Bhd group,” it said.
Meanwhile, in a separate announcement on Monday, it reported net losses of RM4.83million in the first quarter ended Dec 31, 2011 compared with net profit of RM13.41 million a year ago.
Its revenue fell 33.9% to RM39.63 million from RM59.98 million. Its loss per share was 3.13 sen compared with earnings per share of 8.79 sen.
