Yong Tai to undertake shares consolidation, bonus issue of warrants and debt settlement

KUALA LUMPUR, May 17 — Yong Tai Bhd (YTB) is undertaking multiple corporate exercises consisting of shares consolidation, bonus issue of warrants and debt settlement.

In a filing with Bursa Malaysia today, the company said it proposed a share consolidation of every five shares in YTB into one YTB share, a bonus issue of up to 103,098,378 free warrants on the basis of one warrant for every four consolidated shares and a debt settlement of RM46 million debt owing to creditors of the company via 92 million new YTB shares.

It said the proposed share consolidation is expected to enhance the company’s share capital structure.

“As YTB shares are currently traded at relatively low trading price range, a small absolute movement in the share price may be significant in percentage terms.

“The proposed share consolidation will result in a reduction in the number of YTB shares available in the market that may potentially reduce the volatility of the trading price for YTB Shares,” it said.

On the proposed bonus issue of warrants, YTB said the exercise would, among others, enable the company to participate in convertible securities of the company, which are tradable on the Main Market of Bursa Securities, without incurring any cost and allow existing shareholders to benefit from any potential capital appreciation of the warrants.

Meanwhile, it said the proposed debt settlement would enable the company to strengthen its capital base and preserve its cash for other purposes such as working capital requirements, amongst others.

On prospects, it said the company strategy is to stay focused on completing all of its ongoing development projects for the financial year ending June 30, 2022 (FY22).

YTB said it had 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 the third and fourth quarter of this year.

It said with total unbilled revenue of RM271.21 million as at latest practicable date (LPD), the company expected improvements in its earnings in FY22.

The company said it is also exploring the distribution of other healthcare products in order to generate diversified revenue stream.

“As for gold mining operation, the production will commence in phases. This will contribute positively to the group’s financial results for the financial year ending June 30, 2022,” it added. — Bernama