Asia Pacific Wire & Cable Corporation Ltd. Announces Plans for Rights Offering to Shareholders
July 16 2021 - 5:13PM
Asia Pacific Wire & Cable Corporation Limited (Nasdaq:
APWC) (the “Company”), a leading manufacturer of wire and cable
products for the telecommunications and electric-power industries
in the Asia-Pacific region, today announced that it has filed a
Registration Statement on Form F-1 (the “Registration Statement”)
with the Securities and Exchange Commission for a rights offering
to holders of its common shares.
The purpose of the rights offering is to raise
equity capital in a cost-effective manner that gives all of the
Company’s shareholders the opportunity to participate on a pro rata
basis. If the rights offering is fully subscribed, the Company
expects to receive gross proceeds of approximately $8.3 million
before expenses. The net proceeds of the rights offering will
be used for general working capital and corporate purposes.
In the rights offering, the Company will
distribute, at no charge to its shareholders, non-transferable
subscription rights to purchase additional common shares of the
Company. The subscription rights will be issued to
holders of common shares on the record date for the rights
offering, which record date has not yet been determined, at a ratio
of one subscription right per common share. Each
subscription right will entitle the holder to invest $0.60 towards
the purchase of additional common shares of the Company at a price
per share equal to the subscription price. The subscription
price will be equal to 90% of the lower of (1) of the volume
weighted average price per common share on the Nasdaq Capital
Market over the five consecutive trading days through and including
the expiration date of the rights offering and (2) the closing
price per common share on the Nasdaq Capital Market on the
expiration date of the rights offering. This pricing
formula is intended to ensure that the subscription price is at
least a 10% discount to the closing price per common share on the
expiration date of the rights offering.
The rights offering will include an
over-subscription privilege, which will permit each rights holder
that exercises its subscription rights in full the option to
purchase additional common shares that remain unsubscribed at the
expiration of the rights offering. The over-subscription privilege
is subject to the availability and allocation of shares among
holders exercising their over-subscription privilege, as further
description in the rights offering documents.
The Company’s controlling shareholder, Pacific
Electric Wire & Cable Co., Ltd. (“PEWC”), has informed the
Company that it intends to participate in the rights offering by
means of a cash investment of at least approximately $6.3
million. However, there is no guarantee or commitment that
PEWC will ultimately decide to exercise any of its subscription
rights.
The rights offering will not commence until the
Registration Statement has been declared effective by the
Securities and Exchange Commission. The record date for the
distribution of the rights and the dates for both the subscription
period and expiration of the rights offering will be included in
the Company’s final prospectus relating to the rights offering.
A Registration Statement relating to these
securities has been filed with the Securities and Exchange
Commission but has not yet become effective. The securities may not
be sold nor may offers to buy be accepted prior to the time that
such Registration Statement is declared effective. A copy of
the prospectus forming a part of the Registration Statement may be
obtained free of charge at the website maintained by the Securities
and Exchange Commission at www.sec.gov or by contacting the Company
at apwc@skylineccg.com. The rights will be issued to holders of the
Company’s common shares as of a record date, which has yet to be
determined. The Company will provide notice of the record date in
the future at such time as it is determined. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction.
About Asia Pacific Wire & Cable
Corporation
Asia Pacific Wire & Cable Corporation
Limited is a holding company that operates our business through
operating subsidiaries. We are principally engaged in the
manufacture and distribution of enameled wire, power cable and
telecommunications products in Singapore, Thailand, Australia, the
People’s Republic of China and other markets in the Asia Pacific
region. We are also engaged in the distribution of certain wire and
cable products manufactured by our controlling shareholder, PEWC,
and third parties. We also provide project engineering services in
supply, delivery and installation of power cable. Our major
customers include government organizations, electric contracting
firms, electrical dealers, and wire and cable factories.
Safe Harbor Statement
This release contains certain "forward-looking
statements" relating to the Company, its business, and its
subsidiary companies. These forward-looking statements are often
identified by the use of forward-looking terminology such as
"believes", "anticipates", "expects", “estimates”, “intends”,
“plans” or similar expressions. Such forward looking statements
involve known and unknown risks and uncertainties that may cause
actual results to be materially different from those described
herein as believed, anticipated, expected, estimated, intended or
planned. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including those discussed in the
Company's reports that are filed with the Securities and Exchange
Commission and available on its website (www.sec.gov). All
forward-looking statements attributable to the Company or to
persons acting on its behalf are expressly qualified in their
entirety by these factors other than as required under the
securities laws. The Company does not assume a duty to update these
forward-looking statements.
Investor Relations Contact:
Skyline Corporate Communications Group, LLC
Lisa Gray, Senior Account Manager
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: lisa@skylineccg.com
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