Singapore-based GSS Energy Limited has unveiled a significant update that could influence its share price, as the company received a Listing and Quotation Notice (LQN) from the Singapore Exchange Securities Trading Limited (SGX-ST) on November 22, 2024. This announcement pertains to the company’s proposed renounceable, non-underwritten rights issue and adjustments to outstanding warrants, which collectively represent a pivotal moment for shareholders.

Key Highlights of the Announcement

• Proposed Rights Issue: GSS Energy plans to issue up to 607,222,761 new ordinary shares at an issue price of S\$0.013 per share. The offering will be on the basis of nine (9) new rights shares for every ten (10) existing shares held as of the record date. Fractional entitlements will be disregarded.
• Warrants Adjustment: The rights issue will trigger adjustments to the company’s outstanding warrants. Up to 14,650,605 additional warrants will be issued, with new shares issued upon the exercise of these adjusted warrants.
• SGX-ST Approval: The listing and quotation of both the rights shares and additional warrant shares have been approved by SGX-ST, subject to compliance with its listing requirements. However, the LQN does not imply the merits of the rights issue, the company, or its subsidiaries.

Details Shareholders Need to Know

Shareholders must note several critical factors that could impact the company’s valuation and their investments:

• The issue price of S\$0.013 per rights share is highly discounted, which could potentially dilute the value of existing shares if shareholders do not fully subscribe to their entitlements.
• The adjustment to warrants, stemming from the rights issue, will alter the number and/or exercise price of the outstanding warrants as per the Deed Poll dated March 30, 2022. This may affect the rights of existing warrant holders.
• The actual number of additional warrants to be issued may vary, depending on the outstanding warrants as of the record date for the adjustment. Further details will be announced by the company in due course.

Potential Impact on Share Price

This announcement introduces several price-sensitive elements. The discounted issue price could attract market interest, potentially pressuring the current share price due to dilution concerns. On the other hand, the injection of additional capital could bolster the company’s financial position, providing a longer-term advantage. Shareholders are encouraged to monitor upcoming announcements closely to better understand the implications of the warrants adjustment and rights issue.

What’s Next?

The company has assured that it will keep shareholders informed about the final details of the rights issue and warrants adjustment, including the record dates and other relevant timelines. Shareholders are advised to stay updated and consider the potential benefits and risks of participating in the rights issue.