Sand Nisko announces share split, free warrants

by TMR / graphic by MZUKRI MOHAMAD

SAND Nisko Capital Bhd (SNC) plans to undertake a proposed share split involving the subdivision of every existing ordinary share into two shares.

The group is also proposing a bonus issue of up to 115.83 million free warrants on the basis of one warrant for every two shares held on a date to be determined and announced later.

Its current issued shares amount to 115.55 million shares.

“The proposed share split and bonus issue of warrants will potentially result in improved trading liquidity of SNC shares and reward our shareholders for their continuous support by enabling them to participate in convertible securities of the company.

“Besides that, when the three-year tenure warrants are exercised, it will provide us with additional working capital and allow the group to obtain proceeds without incurring interest expenses as compared to bank borrowings,” SNC MD Emily Sow Mei Chet stated in a release yesterday.

As part of the group’s long-term strategy, the group has diversified into the construction segment in 2018 to further expand its revenue and income streams.

The construction segment is expected to contribute positively to SNC’s future earnings, improve its financial performance and position, as well as reduce reliance on its existing furniture business.

Following the group’s diversification into construction, the segment had contributed 69.22% of the group’s total revenue in the financial year ended Dec 31, 2020.

“The group shall continue to shift its business pivot to the construction segment to diversify its income stream. This is further enhanced by the acceptance of seven letters of award for construction works of projects, with aggregate contract value of RM34.52 million, which was announced on July 14, 2021,” Sow stated.