Friday 29 Mar 2024
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KUALA LUMPUR (Dec 12): Protasco Bhd has today called off its proposed private placement and one-for-10 bonus issue of warrants, which was put forward by the board a year ago.

“On behalf of the board of directors of Protasco, AmInvestment Bank Bhd wishes to announce that the company has decided to abort the private placement and bonus issue of warrants,” the company told Bursa Malaysia, in a filing this evening.

The company, which recently embroiled in a shareholder tussle, did not reveal the reason for such decision to terminate the plan in the announcement.

To recap, Protasco had in Dec 12, 2013, proposed the private placement of up to 50 million shares, together with up to 100 million new detachable warrants, on the basis of two warrants for every one placement share.

The board also proposed bonus issue of up to 33.5 million free warrants, on the basis of one warrant for every 10 existing shares.

Protasco is expected to raise RM82.5 million from the private placement, of which RM70 million will be used for property development and construction projects, while another RM12 million will be allocated for working capital, according to the earlier announcement.

Protasco share price fell five sen or 3.4% to settle at RM1.42 today, with 904,600 shares done, bringing it to a market capitalisation of more than RM476 million.

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