JKN Global Group Public Company Limited (SET: JKN) has announced that the Board of Directors approved to propose to the shareholders’ meeting to consider and approve the increase of the registered capital of the company in the amount of 509,958,648.00 Baht by issuing 1,019,917,296 new ordinary shares at a par value of 0.50 Baht to allocate to the existing shareholders.
The company stated that the allocation of the newly issued ordinary shares of not exceeding 1,019,790,011 shares to the existing shareholders of the company in proportion to the number of shares held by each individual (Rights Offering) at the ratio of 1 existing shares per 1 new share with the offering price of 3 Baht.
Meanwhile, the Board also approved an allocation of the newly issued ordinary shares of not exceeding 127,285 shares including the remaining shares from the allocation to the existing shareholders of the company in proportion to the number of shares held by each individual (Rights Offering) to accommodate the adjustment of rights of the Convertible Debentures issued to NHTPE, according to the terms and conditions of the convertible debentures that grant the right to convert into ordinary shares of JKN Global Media Public Company Limited due 2025 (“Convertible Debenture Terms”).
The Extraordinary General Meeting of Shareholders is scheduled for February 15, 2023.
JKN stated that it will use the proceeds from the fundraising to repay the company’s loans in order to reduce the interest burden and maintain the company’s financial ratio at an appropriate level. The proceeds will also be used as working capital in the company to support its current and future operations which will reflect the company’s improved performance in accordance with its continuous growth strategy as well as being used as capital to support the company’s future investment expansion.
In addition to this capital increase, the newly issued ordinary shares with the offering price of 3 Baht is lower than the closing price of JKN’s shares on January 5, 2023, at 4.42 Baht. Its 52-week high was on January 4, 2022, at 8.35 Baht and its 52-week low was on October 3, 2022, at 3.44 Baht.