Muristek
VSolar Group proposes renounceable rights issue of up to 791.85 million new shares
In a filing with Bursa Malaysia today, VSolar said the rights entitlement date will be determined by the board after obtaining the approvals for the proposed rights issue with warrants from all relevant authorities and the shareholders of the company. — Bernama pic
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KUALA LUMPUR, April 8 — VSolar Group Bhd has proposed to undertake a renounceable rights issue of up to 791.85 million new shares together with up to 395.93 million free detachable warrants in the company (Warrants C).
In a filing with Bursa Malaysia today, VSolar said the rights entitlement date will be determined by the board after obtaining the approvals for the proposed rights issue with warrants from all relevant authorities and the shareholders of the company.
“Based on an illustrative issue price of 10 sen per rights share, the gross proceeds to be raised from the exercise are intended to be utilised mainly for funding solar photovoltaic (PV) leasing projects, working capital for railway business, working capital, and estimated expenses for the proposals.
“The company intends to allocate proceeds of up to RM36 million to fund the group’s existing and any future solar PV projects that the group is able to secure,” it said.
VSolar said the proceeds from the proposed rights issue with warrants are earmarked for the cost of feasibility and system studies, initial design, procurement, construction and installation work and authority contributions.
Depending on the number of solar PV projects secured, VSolar said it may also hire additional staff for the management of the projects and incur miscellaneous expenses such as transportation cost on-site for the projects.
Meanwhile, the company also proposed diversification of its business and its subsidiaries to include the sales and trading of spare parts for railway vehicles.
“The proposed diversification entails the diversification of Vsolar Group’s business activities to include sales and trading of spare parts for railway vehicles following the acceptance of the letter of award dated January 11, 2022, from RA Integration Links Sdn Bhd,” it said. — Bernama