Falcon Energy Group has proposed a one-for-10 bonus warrant issue for existing shareholders.

Each warrant can be exchanged for one share at an exercise price of 43 cents.

This represents a premium of 8.9 per cent from the weighted average price of 39.5 cents last Friday.

Falcon said the bonus warrants are to reward shareholders for their continued support by providing them with an opportunity to increase their equity and participate in its future growth.

The warrants may be converted to shares at any time after six months from their listing.

Assuming all bonus warrants issued are exercised, the group will receive proceeds of some $35.5 million.