New Times Energy (HKG:0166) has agreed to place 100 million warrants to substantial shareholder Cheng Yu-tung at HK$0.02 per warrant, or HK$2 million in total.

The net proceeds from the warrant subscription of HK$1.7 million will be used as general working capital of the group.

The warrants have an exercise price of HK$1.05 per warrant share, a 5.94% premium compared to New Times Energy's closing price of HK$1.01 yesterday. The subscription rights will be exercisable within 60 months from the date of the issue of the warrants. The aggregate number of the warrant shares to be issued will be 100 million shares, representing 15.52% of the issued share capital of the company as enlarged by the allotment and issue of such shares.

Assuming a full exercise of the warrants, HK$105 million will be raised and will be used as general working capital, and the shareholding of Cheng in the company will increase to 24.89% from 11.1%.

Source:chinesestock.org