Yong Tai to Undertake Stock Consolidation, Warrant Issuance and Debt Settlement | Money
KUALA LUMPUR, May 17 – Yong Tai Bhd (YTB) is embarking on several corporate exercises consisting of share consolidation, issuance of warrants and debt settlement.
In a filing with Bursa Malaysia today, the company said it is offering a stock consolidation of five YTB shares into one YTB share, a bonus issue of up to 103,098,378 free warrants on the basis of a warrant for four consolidated shares and a debt settlement of a debt of RM46 million owed to the company’s creditors via 92 million new YTB shares.
He said the proposed reverse stock split is expected to improve the company’s share capital structure.
“As YTB shares are currently trading within a relatively low trading price range, a small absolute movement in the stock price can be significant in percentage terms.
“The proposed share split will result in a reduction in the number of YTB shares available in the market, which could potentially reduce the volatility of the trading price of YTB shares,” he said.
Regarding the proposed free issue of warrants, YTB said that the exercise would, among other things, allow the company to participate in convertible securities of the company, which are tradable on the main market of Bursa Securities, without incurring fees and allow existing shareholders to benefit from any potential capital appreciation of the Warrants.
Meanwhile, he said the proposed debt settlement would allow the company to strengthen its capital and preserve cash for other purposes such as working capital needs, among others.
On the outlook, he said the company’s strategy is to remain focused on completing all of its ongoing development projects for the fiscal year ending June 30, 2022 (FY22).
YTB said it completed and delivered vacant possession of The Apple in December 2021 and is also on track to complete and deliver vacant possession of Amber Cove and Impression U-Thant by third and fourth. quarters of this year.
He said that with total unbilled revenue of RM271.21 million as of the last practicable date (LPD), the company expected improved profit in FY22.
The company said it is also exploring the distribution of other health products to generate a diversified revenue stream.
“With regard to gold mining, production will start in phases. This will contribute positively to the group’s financial results for the financial year ending June 30, 2022,” he added. — Bernama