KUALA LUMPUR (Sept 12): EA Holdings Bhd has set the issue price for its proposed rights issue with warrants — to be implemented on the basis of four rights shares for every three existing shares held — at 2 sen each.

The exercise, which involves the issuance of up to 2.3 billion rights shares on a renounceable basis, comes together with up to 1.3 billion free detachable Warrants D, on the basis of two free Warrants D for every four rights shares subscribed.

In its Bursa Malaysia filing today, EA Holdings also announced the exercise price of the Warrants D has been fixed at 5 sen per warrant.

It said the rights share issue price is at a discount of about 56.2% to the theoretical ex-rights price (TERP) of EA Holdings shares of 4.61 sen, calculated based on the five-day weighted average market price (WAMP) of EA Holdings shares of 8.1 sen up to and including Sept 11.

As for the Warrant D exercise price, it represents a premium of about 8.46% to the TERP of its share price of 4.61 sen.

In proposing the exercise earlier this year, together with a par value reduction, the software company said proceeds raised from the rights issuance would be mainly used for future viable investments, and repayment of borrowings.

As of closing, EA Holdings shares slipped 5.3% to 9 sen, after 9.4 million shares were traded.