Malaysian information technology company Vortex Consolidated Bhd intends to raise up to 54.89 million ringgit ($13.2 million) through a series of corporate exercises that involve a share consolidation, rights issue with warrants, and a rights issue of new irredeemable convertible preference shares (ICPS).
Vortex said it wants to use $10.4 million of the proceeds to fund its property development project, $1.6 million for future projects and acquisitions or investments, $962,000 for its working capital; and the remaining $288,000 to defray expenses related to the proposed corporate exercises.
The company will then carry out a renounceable rights issue of up to 60.989 million new shares on the basis of one rights share for every five consolidated shares held on an entitlement date to be determined. The issuance comes with one free detachable warrant for each right share subscribed. The issue price of the rights share has been fixed at $0.036 each.
In addition, Vortex plans to issue up to 914.83 million ICPS on the basis of three ICPS for every one consolidated share held on an entitlement date to be fixed, at an issue price of five sen per ICPS. It also proposed to amend its Memorandum and Articles of Association to facilitate the proposed rights issues and it expects the proposals to be completed in the first half of 2019.