Yen Global announces rights issue, business diversification

KUALA LUMPUR: Yen Global Bhd (Yen Global), a vertically integrated apparel manufacturer, wholesaler and retailer, announced a series of corporate exercises comprising the proposed par value reduction, proposed rights issue of shares with warrants and proposed diversification of the group’s business.

“The proposed corporate exercises will allow Yen Global to reposition itself to a positive financial point.

"Simultaneously, it will enable us to raise additional funds to support the expansion of our core business and the diversification of the business into the ICT industry.

“I believe that the proposed corporate exercises are in the best interest of the group, as well as serving as a reward to our shareholders and as an enabler to anchor and execute our business expansion plans moving forth,” said Yen Global executive chairman Goh Kok Beng in a press statement.

The proposed corporate exercises are subject to the approval from Bursa Securities and the shareholders of Yen Global at an Extraordinary General Meeting to be convened in due course, whilst the proposed par value reduction will require the approval of the High Court of Malaya.

Some of the proposed corporate exercises include proposed par value reduction of the issued and paid-up share capital which involves the cancellation of RM0.40 of the existing par value that would be utilised to set-off against Yen Global’s accumulated losses at the company level.

This is expected result in the reduction of the issued and paidup share capital of the group from approximately RM68.75 million , comprising 137.5 million ordinary shares of RM0.50 each to approximately RM13.75 million ordinary shares of RM0.10 each in Yen Global.

The group also proposed rights issue of shares with warrants of up to 275 million rights shares on the basis of two rights shares for every one existing Yen Global Share held, together with up to 206.25 million renounceable warrants on the basis of three Warrants for every four Rights Shares subscribed.

The proposed rights issue of shares with warrants are expected to raise gross proceeds of up to RM55 million, based on the indicative issue price of RM0.20 per Rights Share.

Aside from that, Yen Global also proposed a diversification of the group’s existing core business, where Yen Global is principally involved in the business of apparel manufacturing, wholesaling and retailing of jeanswear, footwear, ready-made clothing, handbags and other fashion apparels.

The business also provides services relating to specialised treatment and finishing process of jeanswear.

Yen Global has since ventured into the ICT industry via its wholly-owned subsidiary, Atilze Digital Sdn Bhd.