GSS Energy’s Major Rights Issue Announcement: Potential Impact on Share Prices

GSS Energy Limited has made a pivotal announcement concerning a renounceable non-underwritten rights issue, which could significantly influence its stock market performance. The company plans to issue up to 607,222,761 new ordinary shares at a price of S\$0.013 per share, offering nine rights shares for every ten existing shares held. This move is set to take place with a record date of December 11, 2024, for entitled shareholders.

Key Points from the Announcement:

• The rights shares will trade on a “cum-rights” basis until December 9, 2024, and switch to an “ex-rights” basis from December 10, 2024. This means that only individuals holding shares before the ex-rights date will be eligible for the rights issue.
• Entitled shareholders, comprising both Entitled Depositors and Entitled Scripholders, will receive notification letters with instructions on accessing the offer information statement electronically, along with necessary application forms.
• Foreign shareholders will not be eligible to participate in the rights issue due to regulatory restrictions in jurisdictions outside Singapore. However, arrangements might be made to sell their provisional allotments of rights shares “nil-paid” on the Singapore Exchange if a premium can be obtained.

Adjustments to Existing Warrants:

• GSS Energy currently has 40,500,000 outstanding warrants, each allowing the subscription of one new share at S\$0.07054. Due to the rights issue, the exercise price will be adjusted to S\$0.05180.
• Up to 14,650,605 additional warrants will be issued, increasing the total to 55,150,605 warrants. These adjustments are set to take effect after the rights issue closing date and have already been certified by the company’s auditors.

Important Considerations for Shareholders:

Shareholders are advised to proceed with caution when trading shares, as there is no guarantee of the rights issue completion or that its terms will remain unchanged. Furthermore, foreign shareholders will not be participating, which could impact the overall dynamics of the share offering. Investors are encouraged to review the offer information statement and consult with financial advisors if uncertain about potential actions.

Disclaimer:

The information contained in this article is based on an official announcement by GSS Energy Limited and does not constitute financial advice. Investors should conduct their own research and consult with professionals before making investment decisions.