Artroniq Shareholders Approve Private Placement to Raise up to RM36.8 Million

May 19, 2023 at 05:00 AM EDT

KUALA LUMPUR, May 19, 2023 - (ACN Newswire) - Leading global information and communications technology (ICT) provider Artroniq Berhad is pleased to announce that shareholders have approved all resolutions at the Company's EGM today.

Marcus Chin Choon Wei, Chief Financial Officer of Artroniq Berhad

Shareholders approved a private placement of up to 65,659,400 placement shares, representing 20.0% of the Company's total number of issued shares, to raise gross proceeds of up to RM36.8 million for the diversification into the manufacturing of electric bicycles (e-bikes), general working capital and estimated expenses for the proposal.

Shareholders also approved the proposal to diversify into the e-bikes business as part of the Company's strategy to diversify its income stream.

A bonus issue of up to 196,978,202 new warrants on the basis of one warrant for every two existing ordinary shares in the Company was also approved to reward shareholders for their support by enabling them to participate in its convertible securities as well as to provide them with an opportunity to increase their equity participation should they exercise the warrants.

In the event that all the warrants are exercised at the exercise price of RM0.60 each, the Company will raise gross proceeds of RM118 million to be used for working capital requirements, including payments to suppliers and trade creditors, staff costs, directors' remuneration and statutory contributions, overhead expenditures and, compliance expenses.

Marcus Chin Choon Wei, Chief Financial Officer of Artroniq, said, "I would like to thank all our shareholders who participated in the EGM to shape the future of the Company. We also want to thank them for their trust in the board of directors and management in guiding the business to greater success."

"The e-bikes business not only adds an additional income stream, but it also enhances our earnings with a contribution of 25% or more in net profit besides resulting in the diversion of 25% or more of the Company's net assets. The ICT products business comprising provision of point-of-sale (POS) solutions and distribution of POS hardware, peripherals and related services will remain as the Company seek to leverage on opportunities in technology trends."

Earlier this year, Artroniq's wholly owned subsidiary, Artroniq iTech Sdn Bhd, was awarded a RM100.0 million, two-year contract by Beno Inc. to assemble the Reevo series of e-bikes totalling 7,000 units that is expected to be completed on or before 30 September 2023.

As of 19 May 2023, Artroniq's share price is at RM0.80sen with a market capitalisation of RM262.6 million.

Artroniq Bhd: 0038 [BURSA: ARTRONIQ] [RIC: ARTR.KL] [BBG: ARTRONIQ:MK], https://www.artroniq.com/

Source: Artroniq Bhd

Copyright 2023 ACN Newswire . All rights reserved.

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Artroniq Shareholders Approve Private Placement to Raise up to RM36.8 Million

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