As you know, the company made an announcement of the proposed selling of renounceable convertible warrants at 25 sen each to each person holding 2 shares. That means if you own 2 shares you are entitled to buy 1 convertible warrant at 25 sen. Investors reacted negatively. As a result, the share price dropped by 5 sen per share yesterday. 

This morning I told my friends that I would be writing this proposal to the management of Jaks which should be better than the proposed proposal. In believing the company will implement my proposal, they started to buy to support the share price. If they did not, I believe the price would   continue to fall to a lower level. 

In my 50 years of experience in managing companies and looking at the stock market, I have not seen any company doing the same way to raise money for the company. By issuing warrants at a huge discount, it is sending a wrong message, telling the market the company share is overvalued. 

I like to propose that the company to call a right issue of 1 share for every 10 shares held by shareholders at say Rm 1.40 per share with a free convertible warrant. Giving out free convertible warrants is like giving free cash "ang pow" because warrants can be sold immediately in the open market. 

Warrants should normally be trading at a premium.

The total issued number of shares is about 500 million. If the company follow my way, the company will receive about 50 million X Rm 1.40 = Rm 70 million which is about the same amount as that from their original proposed method. 

When the warrants are eventually converted into shares, there will be a further cash injection into the company of about RM 50 million. 

If the company needs more money, it can call a right issue of 1 share for every 8 shares held by shareholders. In this case, the company will get more money.  

I strongly believe when the company announces the withdraw of their original proposal and replace it with my proposal, the share price will go up, because investors, especially existing shareholders, will want to get 1 free convertible warrant by buying 10 shares. 

I trust the board of directors will consider my proposal seriously.