H2G Green is proposing to undertake a renounceable non-underwritten rights issue of up to 1.42 billion warrants. This is the same amount of shares in the company’s issued and paid-up share capital as at Sept 4. At an issue price of 0.1 cents, H2G Green 5AI is estimated to raise gross proceeds of up to $1.42 million.
Each warrant carries the right to subscribe to one new share in H2G Green at an exercise price of 0.4 cents per new share. This is based on one warrant for every existing share held by the company’s shareholders as at a date and time to be determined.
The exercise price represents a discount of 63.64% to H2G Green’s closing price of 1.1 cents per share on Sept 4. The issue price of 0.1 cents and 0.4 cents represent a collective discount of 54.55% to H2G Green’s last-traded price.
The proposed issue will be subject to shareholders’ approval via an extraordinary general meeting (EGM). A circular will be issued in due course.
The warrants cannot be withdrawn after the commencement of ex-rights trading.
Assuming that all the warrants are issued and all of them are fully exercised, H2G Green will have 2.83 billion shares in total.
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H2G shareholders, Lim Shao-Lin and Gashubunited Holding Private Limited, have indicated their intentions to subscribe for all their respective direct entitlement of the warrants. Lim owns 163.7 million shares – or 11.57% - in H2G Green while Gashubunited Holding holds 409.7 million shares representing a 28.95% stake in H2G Green.
According to H2G Green, the warrants will allow its existing shareholders to further participate in the group’s future growth. The warrants will also enable the company to boost its financial position and capital base among other things.
Shares in H2G Green closed 0.1 cent lower or 8.33% down at 1.1 cents on Sept 4.
