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’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.
