KUALA LUMPUR: Central Global Bhd (CGB) has proposed an issuance of one-for-two free warrants paired with a private placement exercise of up to 39.24 million new ordinary shares in CGB.

       The proposed private placement representing not more than 30% of the enlarged total issued share capital of CGB will exclude any treasury shares.

       Based on an illustrative price of 85 sen per placement share, the group intends to raise between RM29.67mil and RM33.36mil.

       It said the proceeds would be used primarily to fund its existing construction projects in Penang specifically the construction of the Montage condominium in Sungai Nibong, the Quinton condominium in Balik Pulau, and the Sri Bayu apartment in Bayan Lepas.

       The proposed free warrants entails the issuance of up to 65.40 million free warrants of the group on the basis of one warrant for every two existing shares held on an entitlement date to be announced later.

       Based on the exercise price of 80 sen per warrant, the group will be able to raise up to RM52.32mil which will serve as a means for the group’s working capital requirements as and when they are exercised.

       The proposals are expected to be completed by the second quarter of 2022.