KUALA LUMPUR, June 15 – Artroniq Berhad, a prominent global information and communications technology (ICT) provider, announced today that its shareholders have unanimously approved all resolutions put forth at the Extraordinary General Meeting (EGM) held earlier. One of the key approvals was for a private placement that allows the issuance of up to 65,659,400 placement shares, equivalent to 20.0% of the Company’s total issued shares. The private placement aims to raise gross proceeds of up to RM36.8 million.
Which will be utilized for diversification into the manufacturing of electric bicycles (e-bikes), general working capital, and estimated expenses related to the proposal. Additionally, shareholders supported the Company’s strategy to diversify its income stream by entering the e-bikes business. This move reflects Artroniq’s commitment to exploring new opportunities and expanding its market presence. Another important approval was the bonus issue of up to 196,978,202 new warrants.
This issuance will enable shareholders to participate in the Company’s convertible securities and potentially increase their equity participation if they choose to exercise the warrants. The proposed ratio is one warrant for every two existing ordinary shares in the Company. Upon exercise of all the warrants at the exercise price of RM0.60 each, Artroniq stands to raise gross proceeds of RM118 million. These funds will be allocated to meet various working capital requirements.
Including payments to suppliers and trade creditors, staff costs, directors’ remuneration and statutory contributions, overhead expenditures, and compliance expenses. Marcus Chin Choon Wei, Chief Financial Officer of Artroniq, expressed gratitude to the shareholders for their participation in shaping the future of the Company and for their trust in the board of directors and management. He emphasized that the e-bikes business would not only provide an additional income stream but also contribute to at least 25% of the net profit and net assets diversion for Artroniq.
Simultaneously, the Company will continue to focus on its core ICT products business, which includes the provision of point-of-sale (POS) solutions and distribution of related hardware, peripherals, and services. Artroniq’s wholly owned subsidiary, Artroniq iTech Sdn Bhd, recently secured a two-year contract worth RM100.0 million from Beno Inc. The contract entails assembling the Reevo series of e-bikes, totaling 7,000 units, with an expected completion date on or before 30th September 2023.
As of 19th May 2023, Artroniq’s share price stands at RM0.80sen, resulting in a market capitalization of RM262.6 million. The Company remains committed to leveraging technology trends and capitalizing on emerging opportunities while delivering value to its shareholders and stakeholders.
