Email This Print This News

Others

BackOct 25, 2017
Type Announcement
Subject OTHERS
Description
EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS RAISED FROM THE RENOUNCEABLE RIGHTS ISSUE

The Board of Directors of BHS Industries Berhad (“Company”) wishes to inform that the Board had decided to extend the timeframe for the utilisation of the remaining proceeds raised from the renounceable rights issue exercise allocated for purchase of plant & machinery & other ancillary facilities for a further period of 12 months until 22 October 2018.

The details of the status of utilisation of proceeds raised from the renounceable rights issue exercise, which was completed on 22 October 2015 is summarised as follows:

 

 

Proposed utilisation as per Circular to Shareholders dated 28 July 2015

Actual utilisation as at 10 October 2017

Balance unutilised
    RM'000 RM'000 RM'000
(i) Acquisition of land 7,000 7,000 0
(ii) Purchase of plant & machinery & other ancillary facilities 33,641 27,404 6,237
(iii) Estimated expenses in relation to the corporate exercise 1,000 1,000 0
  TOTAL 41,641 35,404 6,237

As stated in the Circular to Shareholders dated 28 July 2015, the Company intends to utilise RM33.641 million for the purchase of plant & machineries & other ancillary facilities for the purpose of manufacture of wood free paper from the renewable paper pulp products generated from empty fruit bunches. To-date, only RM27.404 million has been utilised to part purchase a complete set of production line for pulp and paper.

In view that the Company is still in the midst of implementing its business diversification initiatives into manufacturing of renewable paper pulp products and there is no immediate requirement to fully settle the cost of purchase of the said production line at this juncture pending completion of the construction of the factory, the Board accordingly decided to extend the timeline for the utilisation of the remaining proceeds raised from the renounceable rights issue exercise for another year (i.e. from 22 October 2017 to 22 October 2018).

This announcement is dated 25 October 2017.

 


Announcement Info

Company Name BHS INDUSTRIES BERHAD
Stock Name BHS
Date Announced 25 Oct 2017
Category General Announcement for PLC
Reference Number GA1-25102017-00069