Palette Multimedia proposes rights issue

KUALA LUMPUR: PALETTE MULTIMEDIA BHD [] has proposed a renounceable rights issue of up to 154.51 million warrants at an indicative price of three sen each to raise up to RM4.63 million.

The ACE Market company said on Wednesday, Sept 7 the warrants would be on the basis of one warrant for every two shares held.

Under the minimum scenario, it would raise RM4.35 million of which RM3.45 million would be used for working capital. Under the maximum scenario, it would raise RM4.63 million of which RM3.73 million would be for working capital.

Palette said the issued and paid-up share capital was RM29.05 million comprising of 290.52 million shares. Assuming the exercise of all the existing outstanding 18.50 million employees’ share option scheme (ESOS) options into 18.50 million Palette shares prior to the entitlement date, a maximum of 154.51 million warrants may be issued.

It added the final exercise price of the warrants would take into account the five-day weighted average market price (VWAP) of Palette shares preceding the price fixing date and it would not be lower than the par value of Palette shares of 10 sen each.

Palette closed untraded at 7.5 sen on Wednesday.