KUCHING: Borneo Oil Bhd has obtained the approval of its shareholders for the proposed bonus issue of bonus warrants at its extraordinary general meeting (EGM) on Thursday.
Borneo, which owns homegrown fast food chain restaurant SugarBun, has proposed to issue up to about 3.52 billion of free warrants on the basis of one warrant E for every four existing ordinary shares in the company held by the entitled shareholders on an entitlement date to be determined later.
The proposed bonus issue of warrants is aimed to reward the existing shareholders for their loyalty and continuing support for the company by providing an option to further increase their equity participation in the company at a pre-determined price over the tenure of the Warrants E and to benefit from the future growth and any potential capital appreciation of the shares arising therefrom, according to Borneo managing director Datuk Joseph Lee Yok Min @ Ambrose in an earlier circular to shareholders.
Warrants E has a tenure of five years.
Borneo will announce the entitlement date of the Warrants E in early January 2025, and the Warrants E are expected to be quoted and listed on the Main Market of Bursa Malaysia Securities Bhd at end January 2025.
Lee said assuming the full exercise of Warrants E at the exercise price of RM0.007 each; the company is expected to raise gross proceeds of up to RM24.64 million, which is expected to fund the group’s working capital requirements.
Borneo shares closed at RM0.01 on Thursday.
At the EGM, shareholders also gave their nod to the company’s proposed establishment of a new employees’ share option scheme (ESOS) of up to 15 per cent of Borneo’s total number of issued shares (excluding treasury shares, if any) at any point in time over the duration of the new ESOS.
The proposed new ESOS will be established after the proposed termination of the existing ESOS takes effect.
The proposed new ESOS involves the granting of options to subscribe for Borneo shares to the eligible persons to subscribe for the new Borneo shares at specified prices to be determined.
Shareholders approved the proposed allocation of ESOS options to Borneo chairman Tan Kok Choi, Ambrose Lee (managing director), Seroop Singh Ramday (senior independent non-executive director), Georgia Suzanne Lingam @ Georgianne (executive director), Susie Chung Kim Lan (independent non-executive director), Sri Ganesh K Balasubramaniam (executive director) and Siti Ainee Hanum Suhaidi (independent nonexecutive director).
Sri Ganesh and Lingam were re-elected as directors at Borneo’s annual general meeting (AGM) held before the EGM.
Also re-elected was executive director Riorn Lee Kah Vui.
The proposed new ESOS, said Lee, is to recognise and reward the eligible persons by giving recognition to their contributions and services that are considered vital to the operations, hence motivating employee performance to create sustainable growth and profitability for the group.
It is also to attract prospective employees with relevant skills and experience to the group by making compensation packages offered more competitive.
“The actual amount of proceeds to be raised from the proposed new ESOS will depend on the number of ESOS options granted and exercised at the relevant point of time and the exercise price payable upon the exercise of the ESOS options, respectively.
“The proceeds arising from the exercise of the ESOS options as and when received will be utilised for the working capital requirements of the group,” he added.
The AGM also approved the payment of directors’ fees amounting to RM405,000 to nonexecutive directors for financial year ended June 30, 2024 as well as directors’ fees and benefits of up to an amount of about RM1.72 million from December 20, 2024 until the next AGM, Borneo said in a filing with Bursa Malaysia.
Shareholders also gave their green light to the renewal of authority for the company to issue shares pursuant to Section 75, 76 of the Companies Act, 2016, and proposed renewal of authority for share buy back.
Also approved was the re-appointment of Thelyx Malaysia PLT (formerly known as STYL Associated PLT) as the company’s external auditors until the conclusion of the next AGM and to authorise the directors to fix their remuneration.
