KUALA LUMPUR (Oct 10): Sanichi Technology Bhd shares fell 6.06% in active trade this morning after it proposed a rights issue with warrants to raise some RM59.26 million on base case scenario — an amount that is more than its existing market capitalisation of RM48.9 million — which will be used mainly for its property development activities.

At 9.06am, Sanichi fell 1 sen to 15.5 sen with 2.45 million shares done.

The exercise involves up to 990.59 million new shares as well as 495.29 million warrants on the basis of two rights shares together with one free Warrant E for every one existing Sanichi share held by the entitled shareholders on an entitlement date to be determined later.

Meanwhile, the exercise price of the Warrants E shall also be decided by the group at a later date once it has obtained all relevant approvals before the entitlement date.

However, as Sanichi intends to raise a minimum of RM10 million, it will undertake the exercise based on the minimum subscription level of 100 million rights shares along with 50 million Warrants E, assuming that the rights shares will be issued at 10 sen each.

The 10 sen, said the group, represents a discount of about 13.6% to the theoretical ex-all price of Sanichi shares of 11.57 sen, based on the five-day volume weighted average market price of 16.27 sen up to and including Sept 27.