I must clarify that I am not an expert. Since the exercise price for warrant is 75 sen which is higher than the current market price of the share, the warrant is currently out of money and no investor will convert the warrants into shares. Hence there will not be any impact on share price in short term. In longer term if the share shares are traded above 75 sen then there will be gradual increase of company shares in the market with the conversion of warrant and this will result in negative impact on EPS and putting pressure on its share price. However, with the conversion of warrants into shares, the company will receive additional working capital which can be used to pare down its debt which in return will have a positive impact on its earning. Personally I feel the share price will not be affected in future with the conversion of warrant is the growth of company is intact.
TMC Life now traded at bullish market due to free bonus warrant (every 2 MS get 1 free warrant) Strongly agreed as this is not significant dropped in share price. Expected traded TMC Life-WB Price = 1.5 X Mother Shares - Exercise Price of New warrant B = 1.5 X RM0.695 - RM0.75 = RM0.30 per warrant. If you buy 100,000 mother shares will free 50,000 warrants and if warrant traded RM0.30 , you will gain RM15,000.
Note:- the above is not buy/sell recommendations . Any profit/loss made is traded at your own risk and not responsible by us.
Mother share will be adjusted for the price of the warrant otherwise this will become a paradox as ppl will just keep buying as it is always profitable to buy mother shares to get warrant.
Entitlement Details: Bonus issue of up to 599,760,718 warrants ("Bonus Warrants") on the basis of one (1) Bonus Warrant for every two (2) existing ordinary shares of RM0.10 each in TMC Life Sciences Berhad held at 5.00 p.m. on 11 June 2015 ("Entitlement Date").
Entitlement Type: Bonus Issue Entitlement Date: 20150611050000 12:00AM Year Ending/Period Ending/Ended Date: 31-05-2016 EX Date: 09-06-2015 Payment Date: 00-00-0000
A depositor shall quantify for the entitlement in respect of: -Securities transferred into the Depositor's Security Account Before: 20150611050000 12:00AM in respect of ordinary transfers -Securities bought on BMSM on a cum entitlement basic according to the Rules of the BMSB
Registrar's Name and Contact :
Remarks: The notice of allotment for the Bonus Warrants will be despatched to the address as per the Record of Depositors within eight (8) clear market days from the Entitlement Date.The Bonus Warrants will be quoted within two (2) market days after the submission of the application for quotation of the Bonus Warrants to Bursa Malaysia Securities Berhad.This announcement is dated 28 May 2015. You are advised to read the entire contents of the announcement or attachment. To read the entire contents of the announcement or attachment, please access the Bursa website at http://www.bursamalaysia.com
Guys the price is adjusted downwards by the price of the warrant (RM0.1 each based on the notice). Yesterday closing was RM0.71. So the price of the share should be RM0.61 but now it went to RM0.625. Correct me if I am wrong. Nothing RIP.
10cents is exactly the price of the warrant that will be issued later. Why would the price suddenly drop without much selling and any bad news? Go check out the buy rate.
Bonus issue of up to 599,760,718 warrants ("Bonus Warrants") on the basis of one (1) Bonus Warrant for every two (2) existing ordinary shares of RM0.10 each in TMC Life Sciences Berhad held at 5.00 p.m. on 11 June 2015 ("Entitlement Date").
Entitlement Type: Bonus Issue Entitlement Date: 20150611050000 12:00AM Year Ending/Period Ending/Ended Date: 31-05-2016 EX Date: 09-06-2015
nicholas, u will know in future and laugh at yourself why i address you so, adjustment and drop also cant differentiate... and think youself the one who is right some more... really entertaining :D
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jeff123
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Posted by jeff123 > 2015-05-29 00:16 | Report Abuse
don't think so. bonus warrants shouldn't dilute the price. Need expert advise here