Advanced Systems Automation’s Bold Move: Rights Cum Warrants Issue Approved

Advanced Systems Automation Limited (ASA) has announced a significant development that could potentially influence its share price. The company has received the listing and quotation notice from the Singapore Exchange Securities Trading Limited (SGX-ST) for its proposed renounceable non-underwritten Rights Cum Warrants Issue. This initiative allows ASA to issue up to 1,093,521,189 Rights Shares, 729,014,126 Warrants, and 729,014,126 Warrant Shares on the Catalist, contingent upon compliance with SGX-ST listing requirements and ensuring a sufficient spread in the Warrants as per Rule 826 of the Catalist Rules.

The Rights Cum Warrants Issue is structured to offer three Rights Shares for every two existing shares held, along with two Warrants for every three Rights Shares subscribed, with fractional entitlements disregarded. This issuance has been approved by the shareholders during the extraordinary general meeting held on 8 November 2024.

While the listing and quotation notice is an encouraging step, the company has clarified that it should not be perceived as an indication of the merits of the Rights Cum Warrants Issue or the associated securities. The Offer Information Statement related to this issue will be dispatched to entitled shareholders in due course, with further announcements expected.

Shareholders and potential investors are urged to exercise caution, as there is no certainty that the Rights Cum Warrants Issue will materialize. The company emphasizes the importance of reviewing all announcements and consulting financial, tax, or other professional advisors when in doubt.

As ASA continues to navigate this strategic financial maneuver, investors will be keenly observing for any potential impacts on the company’s share value. The company has committed to providing updates as necessary.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The content has not been examined or approved by the SGX-ST, which assumes no responsibility for its accuracy. Always consult with a financial advisor before making investment decisions.

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