SINGAPORE - Watch-listed VibroPower Corporation is looking to issue up to $1.8 million of shares with warrants on a renounceable, non-underwritten basis, mainly to finance the expansion of its businesses, it said in a filing late on Tuesday night .
Based on the company's issued share capital of some 36 million shares as at Oct 1, VibroPower is proposing to issue up to 18 million rights shares with 18 million warrants. The company has no outstanding convertible securities as at Oct 1. The remaining 22 per cent of the net proceeds - or some $340,000 million - will be used for general working capital requirements of the group, which includes operating costs. The group is expecting more cash to be required for its operating activities in view of the recently secured exclusive distribution rights of a range of Lister Petter brand of products, including engines and spare parts.
Mr Benedict Chen holds a 22.5 per cent stake in VibroPower. By way of acceptance, he will subscribe for all his pro-rata entitlements of 4 million rights shares with 4 million warrants at a total value of $404,386. By way of excess application, he will also subscribe for all excess rights shares with warrants that are not taken up by the other entitled shareholders at a value of up to $1.3 million.