GSS Energy Announces Ambitious Rights Issue and Warrant Adjustments: A Potential Game Changer

GSS Energy Limited has unveiled plans for a significant renounceable non-underwritten rights issue, offering up to 607,222,761 new ordinary shares at S\$0.013 per Rights Share. This strategic move aligns with the company’s efforts to bolster its capital structure and potentially enhance shareholder value.

Key Details of the Rights Issue

• The rights issue is based on nine (9) Rights Shares for every ten (10) existing shares held by shareholders as of the record date, scheduled for 11 December 2024.
• Shares will trade on a “cum-rights” basis until 9 December 2024 and will switch to an “ex-rights” basis from 10 December 2024.
• Entitled Shareholders, including Entitled Depositors and Entitled Scripholders, will receive instructions on accessing the Offer Information Statement electronically.
• Foreign Shareholders will be excluded from participating due to jurisdictional restrictions.

Adjustments to Warrants

In conjunction with the rights issue, GSS Energy is making adjustments to its outstanding warrants:

• The exercise price of each warrant will decrease from S\$0.07054 to S\$0.05180.
• An additional 14,650,605 Warrants will be issued, increasing the total to 55,150,605.
• The adjustments have been certified by RSM Chio Lim LLP and are effective from the next Market Day following the rights issue closing date.

Important Considerations for Shareholders

Shareholders are advised to exercise caution when trading shares due to uncertainties regarding the completion of the rights issue and potential changes to its terms. The Offer Information Statement will provide further details on acceptance procedures, renunciation, and the application process for Excess Rights Shares.

Additionally, the issue of Additional Warrant Shares will adhere to the Share Issue Mandate approved in April 2021.

Potential Market Impact

The rights issue and warrant adjustments signal GSS Energy’s strategic initiatives to strengthen its financial position. These actions could impact share values, making it crucial for shareholders to stay informed and consult with financial advisors if needed.

Further announcements will be made to provide shareholders with comprehensive details and instructions.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Shareholders should consult with their financial advisors before making any investment decisions.