mDR flags bank error in rights issue, revises proceeds and stake projections

mDR Limited ( (SG:Y3D) ) just unveiled an update.

mDR Limited has disclosed that an inadvertent error by the bank of its undertaking shareholder led to the erroneous sale of 87,347,800 nil-paid rights entitlements on the open market, undermining his ability to fully honour an irrevocable commitment to subscribe for his pro rata rights. The company has outlined revised minimum and maximum subscription scenarios for its ongoing rights-cum-warrants issue, detailing the impact on net proceeds, debt repayment plans and post-issue shareholding structures, and has urged shareholders and investors to exercise caution while it assesses further developments.

In the minimum subscription scenario, where the erroneous rights are not taken up by other investors, mDR expects net rights proceeds of about S$25.6 million and rights-related warrant proceeds of S$25.9 million, with a portion of the undertaking shareholder’s subscription being set off against existing loans rather than yielding new cash. In the maximum subscription scenario, assuming the mis-sold entitlements are fully subscribed by other investors, net rights proceeds are projected at S$65.0 million and warrant proceeds at S$65.3 million, though only around S$39.1 million of the total net proceeds would be received in cash, with significant implications for the undertaking shareholder’s eventual stake and overall shareholder dilution.

More about mDR Limited

mDR Limited is a Singapore-incorporated company that is undertaking a renounceable, non-underwritten rights-cum-warrants issue as part of its capital-raising plans. The proceeds are earmarked for general corporate purposes, including repayment of debt and working capital, with warrant exercises potentially funding future investments and acquisitions.

Average Trading Volume: 2,535,840

Technical Sentiment Signal: Sell

Current Market Cap: S$39.4M

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