EcoFirst proposes bonus issue of 443.82 mln warrants

KUALA LUMPUR, May 10-- EcoFirst Consolidated Bhd is proposing a bonus issue of up to 443.82 million warrants on the basis of one warrant for every two existing EcoFirst shares held by entitled shareholders.

The property developer said the entitlement date for bonus warrants would be determined by the board and announced at a later date.

The exercise, expected to be completed by the third quarter of this year, would eventually raise gross proceeds of RM177.53 million based on an assumed exercise price of 40 sen, it said in a filing with Bursa Malaysia today.

“It is proposed that all proceeds from the exercise of warrants be used for the company and its subsidiaries’ working capital without the need of incurring bank borrowings which carry interest costs.

“The proposed bonus issue of warrants will not raise any immediate proceeds as the warrants will be issued at no cost to entitled shareholders,” it said. 

According to EcoFirst, the proposed bonus issue also serves to reward its shareholders by providing the opportunity to increase equity participation at a pre-determined price.

On prospects, the company said it planned to introduce new development projects via the proposed purchase of 1.68-hectare commercial land in Damansara Damai, Selangor, for RM70 million and the proposed acquisition of a 51 per cent stake in BCM Holdings Sdn Bhd, owner of 1.69 hectares in Sungai Besi, Kuala Lumpur, for RM81.6 million, in addition to the ongoing project in Section U9, Shah Alam.

-- BERNAMA