Artroniq chief financial officer Marcus Chin Choon Wei
KUALA LUMPUR: Artroniq Bhd
has received approval from its shareholders to diversify into the electric bicycles (e-bikes) business as part of its strategy to diversify its income stream.
“The e-bikes business not only adds an additional income stream, but it also enhances our earnings with a contribution of 25% or more in net profit besides resulting in the diversion of 25% or more of the company’s net assets,” chief financial officer Marcus Chin Choon Wei said in a statement.
“The ICT products business comprising provision of point-of-sale (POS) solutions and distribution of POS hardware, peripherals and related services will remain as the company seek to leverage on opportunities in technology trends,” he added.
At the EGM, its shareholders also approved a private placement of up to 65.65 million placement shares, representing 20.0% of the company’s total number of issued shares, to raise gross proceeds of up to RM36.8mil for the diversification into the manufacturing of e-bikes, general working capital and expenses.
A bonus issue of up to 196.97 million new warrants based on one warrant for every two existing ordinary shares in the company was also approved to reward shareholders for their support.
In the event that all the warrants are exercised at the exercise price of RM0.60 each, the company will raise gross proceeds of RM118mil to be used for working capital requirements, including payments to suppliers and trade creditors, staff costs, directors’ remuneration and statutory contributions, overhead expenditures and, compliance expenses.
