This article first appeared in The Edge Financial Daily on November 13, 2017 - November 19, 2017

HLT Global Bhd (-ve)

SHARES in HLT Global Bhd (fundamental: n/a, valuation: n/a), which triggered our proprietary algorithm last Friday, closed 3.5 sen or 5.93% higher at 62.5 sen that day, after 8.92 million shares were traded, compared with its 200-day average volume of 991,067 shares.

On Sept 25, HLT Global had announced plans for a bonus issuance of up to 132.96 million new shares in the company, on the basis of one bonus share for every two shares held on an entitlement date to be fixed.

The rubber glove dipping line service provider also proposed to issue up to 199.44 million free warrants, on the basis of three warrants for every four HLT Global shares (three-for-four) held on the same entitlement date, at an exercise price of 20 sen apiece.

The proposals are to reward its shareholders as well as to expand the counter’s trading liquidity via a larger capital base. The warrants will also enable the company to raise proceeds of up to RM39.89 million when exercised, which will be used for the group’s working capital.