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$Hong Lai Huat (CTO.SG)$ Any idea why it shoots up?
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  • Ben Bock : it should be the proposed issue of warrant. it can be found in the announcement.

  • Ben Bock : Hong Lai Huat issues warrants to Soochow CSSD Capital Markets

    Hong Lai Huat - a property company with a large development project outside of Phnom Penh - announced on Nov 24 that it will issue to Soochow CSSD Capital Markets (Asia) 80 million non-listed and transferable warrants exercisable within two years from the date of issue of the Warrants.

    Each warrant carry the right to subscribe for 1 new share in the company at the following exercise prices: 30 cents per Share for the first 20 million warrants 35 cents per share for the next 20 million warrants 40 cents per share for the next 20 million warrants and 45 cents per share for the last 20 million warrants

    Hong Lai Huat last traded at 9.4 cents.

    Assuming the warrants are exercised in full, the warrant shares represent approximately 15.45% of the company&rsquo s existing 517,844,114 issued shares as at the date of the announcement, and approximately 13.38% of the aggregate 597,844,114 issued shares taking into account the warrant Shares.

    If the warrants are exercised in full at the exercise prices (assuming no adjustments are required to be made to the exercise prices and/or the number of warrants issued pursuant to the conditions), the estimated amount of net proceeds that may be raised (after deducting estimated costs and expenses of $700,000) is approximately 29.3 million.

    Hong Lai Huat' s board believes the issuance of the warrants is beneficial in the long run as the exercise prices are at significant premia to the current market trading price of the shares and the funds from the exercise of the warrants will further strengthen the company' s cash balance to be deployed for ongoing developments and activities in Cambodia.

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