Monday, September 12, 2011

No money for JCY-CC holders

KUALA LUMPUR: Holders of JYC International Bhd call warrants (JCY-CC) who bought these units in September 2010 would have lost out when these units expired a year later on Monday, Sept 12.

According to the term sheet issued Sept 7, 2010, up to 60 million non-collateralised cash settled European-style call warrants were issued over the ordinary shares of JCY.

The exercise ratio was two JCY call warrants for one JCY share. The issue price was 15 sen and the exercise price was RM1.08, which was 95.58% of the reference price. The reference price was RM1.13, which was the one day volume-weighted average price of JCY on Sept 6, 2010.

However, the share price had fallen sharply since then, due to the weak outlook for the hard disk drive manufacturer and also in tandem with the poor trading sentiment.

As at Monday, Sept 12, the settlement price was 42.5 sen.'' As the settlement price was less than the exercise price, the cash settlement amount was negative. Warrant holders would not be entitled to receive any payment of the cash settlement amount.

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