Phillip Securities Research Pte Ltd

Singapore

16 Nov 2010

KLW Holdings Limited and its subsidiaries said it has secured a new order worth approximately SGD1.3 million for Waterfront Key, a Singapore ’s development. This is the second order secured by the Group for Singapore ’s project market and we will continue to source for such quality projects to add to its order book. 

 

 

Renounceable Non-Underwritten Rights Issue of up to 780,739,576 new ordinary shares (the “rights shares”) in the capital of the company , at an issue price of $S0.01 for each rights share, with up to 117,110,936 Free detachable warrants (The “warrants”), each warrant carrying the right to subscribe for one (1) new ordinary share in the capital of the company (The “New Share”) at an exercise price of S$0.015 for each new share, on the basis of twenty (20) rights share with three (3) free detachment warrants for every ten (10) existing ordinary shares (the “shares”) held by entitled shareholders of the company as at books closure date, fractional entitlements to be disregarded.

 

Can some kind soul and warrant/right guru help to decode the above formulas?

 

Questions:

 

1.       Is it worth the exercise on the right or warrant? Or is it better to better to buy off the open market to average down?

 

2.       What do “free detachment warrants” means?

 

3.       Do we pay 1cts or 1.5cts for the exercise to purchase the ordinary share?

 

Thanks in advance.