KUALA LUMPUR (Oct 10): Guan Chong Bhd shareholders had today approved the cocoa grinder's proposed one-for-one bonus share and one-for-three bonus warrant issue.

In a statement today, Guan Chong said its shareholders approved the proposal at the company's extraordinary general meeting in Johor.

"The proposed bonus issue involves the issuance of up to 527.94 million new ordinary shares subject to the level of treasury shares resold to the open market. From its existing share capital of RM214.3 million comprising 501.8 million shares, the minimum scenario of the bonus issue would see the group's share capital maintain at RM214.3 million with enlarged share base of one billion shares, while the maximum scenario would lead to increased share capital of RM271.4 million comprising 1.1 billion shares.

"The group would also issue a maximum of 176 million free warrants. The warrants have an exercise price of RM1.65 per warrant, with a tenure of three years commencing from the date of issuance of the warrants," the company said.

Guan Chong said assuming full exercise of the warrants under the maximum scenario, the group will raise a maximum of RM290.4 million in proceeds over the three-year period, to be utilised for working capital requirements.

"Under the maximum scenario and assuming full exercise of warrants, the group's enlarged share capital would increase to RM561.8 million comprising 1.2 billion shares," Guan Chong said.

At 3:10pm today, Guan Chong's share price fell nine sen or 1.97% to RM4.48. The stock saw 429,100 shares traded.