SHAREHOLDERS of Tiger Synergy Bhd had given the nod to the company’s latest round of fund-raising exercise despite opposition by substantial shareholder Safari Alliance Sdn Bhd which holds a 10.89% stake in the company.
In a statement, Tiger Synergy said shareholders have approved its proposed renounceable rights issue of up to 1.1 billion new shares in the company along with up to 1.1 billion free detachable warrants (Warrants D) on the basis of three rights shares together with three free Warrants D for every four existing shares held by the entitled shareholders on an entitlement date to be determined during its extraordinary general meeting (EGM) yesterday.
The approval will enable Tiger Synergy to raise funds of up to RM44.1 mil for its existing and future property development projects.
During its EGM, a majority of Tiger Synergy’s shareholders who collectively hold 762.3 million shares or about 68.4% of the company’s shares approved the proposal.
A Tiger Synergy spokesman said the outcome of the EGM has helped to clarify some of the concerns and issues raised by Safari Alliance via news portal and during the EGM itself.
“We’re happy that the majority of the shareholders continue to place their trust in the management of the company,” the spokesman noted in a statement.
“We’re glad that we managed to answer some of the questions raised during the EGM which help to enlighten some of our shareholders. We believe this understanding has helped with the approval of the proposal made.
In a media statement dated July 27, Safari Alliance said it had on July 19 filed a lawsuit against Tiger Synergy and its board, namely Datuk Tan Wei Lian, Tan Lee Chin, Datin Sek Chian Nee, Datuk Khoo Seng Hock, Datuk Lee Yuen Fong, Low Boon Chin, Chua Eng Chin and Datin Sulizah A. Salam, in a bid to clarify material information as well as to declare the EGM notice null and void.
“One significant but questionable transaction was where around RM39.3 mil was advanced to an alleged contractor for pre-construction costs towards end-2019 and recorded as a receivable,” commented Safari Alliance’s director Goh Ching Mun.
“This type of payment was not within the represented intended use of funds for the fund raising conducted in 2018. Before the company can embark on yet another fund raising exercise, there should be full and frank disclosure as to why this sum was not collected.”
At 4pm, Tiger Synergy was untraded at 5.5 sen. – July 30, 2021
