KUALA LUMPUR (November 7): Macquarie Capital Securities (M) Sdn Bhd, which issued the TOPGLOV-C1K share-based purchase warrants of Top Glove Corp Bhd, said the holders of the warrants did not would be entitled to receive any cash payment. settlement amount at the expiration of the securities on Friday, November 5, 2021, as the settlement price being the average closing price of Top Glove shares on Bursa Malaysia for the five market days preceding and including the day immediately preceding the date of expiration was lower than the exercise price of the vouchers.
As such, the cash settlement amount was negative, Macquarie Capital said on Friday in a statement to Bursa.
“The settlement price was determined at RM2.6060, which is the average closing price of Top Glove shares on Bursa for the five market days preceding and including the market day immediately prior to the expiration date,” said Macquarie Capital, which on March 10, 2021 issued the warrants at 15 sen each before the securities were listed on Bursa on March 11, 2021.
According to the list of warrants terms of March 10, 2021, the securities with an exercise ratio of 15 warrants for one Top Glove share had an exercise price of RM7.08.
Macquarie Capital said in the term sheet that the program involved up to 80 million European unsecured cash-settled purchase warrants on Top Glove common stock.
The European style means that vouchers “can only be exercised on the expiration date”.
According to Macquarie Capital’s Bursa file on October 6, 2021, the TOPGLOV-C1K warrants would be delisted from Bursa on Monday, November 8, 2021.
On Friday, November 5, 2021, Top Glove’s share price closed down one sen or 0.4% at RM 2.48 for a market value of around RM20.36 billion based on 8, 21 billion shares issued by the company.
Top Glove saw 14.31 million shares traded.