Xpress Holdings proposes 2-for-5 rights issue to raise net proceeds of up to $13.1 million

Xpress Holdings is proposing a renounceable underwritten rights issue of up to 711.7 million new ordinary shares at an issue price of $0.02 for each rights share, on the basis of two rights shares for every 5 ordinary shares owned.

The issue rice of $0.02 for each rights share represents a discount of about 47.4% to the closing price of $0.038 per share on Sep 30.

Xpress is proposing the rights issue to strengthen its cash position, to raise funds for its business development and expansion, general working capital purposes and to reduce or retire certain indebtednesses of the group.

Accordingly, based on the issue price of $0.02, the net proceeds of the rights Issue, after deducting estimated expenses, including all professional fees, commissions and expenses of $1.16 million, is expected to be $13.07 million.