Ocean Sky International proposes rights cum warrants issue to boost financials

SINGAPORE - Ocean Sky International has proposed to undertake a rights issue of up to 162.5 million new shares with up to 162.5 million free detachable warrants.

The company said it is undertaking the rights cum warrants issue to strengthen its financial position.

Shareholders can subscribe for one rights share for every two existing shares they hold, and one warrant for every one rights share subscribed.

The rights shares are priced at $0.062 each, a discount of 26.2 per cent to the last traded price of $0.084 per share on May 21.

Each warrant has an exercise price of $0.068, a discount of 19 per cent to the last traded price of $0.084 per share on May 21.

The rights issue is non-underwritten.

Controlling shareholder Ang Boon Cheow Edward, who is also Ocean Sky's executive chairman and chief executive, owns 57.07 per cent of the company.

He undertakes to subscribe and pay in full for his entire pro rata entitlement of 92.7 million rights shares.

Under the maximum subscription scenario, the group will raise net proceeds of $20.9 million from the rights issue and exercise of all warrants.

At the very least, the group would raise net proceeds of $5.5 million assuming that only Mr Ang subscribes for his undertaking shares, and does not exercise his warrants.

The group has a share capital of 324.9 million shares and no outstanding convertible securities.


Correction note: An earlier version of this story stated that under the maximum subscription scenario, the group will raise net proceeds of S$11.05 million. This is incorrect. S$11.05 million refers only to the net proceeds from the exercise of all warrants.

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