Asia Pacific Wire & Cable Corporation Ltd. Announces Commencement of Rights Offering
15 January 2022 - 12:00AM
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 the commencement of its
previously-announced rights offering.
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 as of 5:00 p.m., Eastern Standard Time, on January 7,
2022, the record date for the rights offering, at a ratio of one
subscription right per common share. The subscription period for
the rights offering commenced on January 14, 2022, and terminates
(unless extended) at 5:00 p.m. Eastern Standard Time on January 31,
2022, which we refer to as the expiration date of the rights
offering. 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) 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 Company will disclose the final
terms of the rights offering promptly following the expiration
date.
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.
The Company’s controlling shareholder, Pacific
Electric Wire & Cable Co., Ltd. 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 Pacific Electric Wire &
Cable Co., Ltd. will ultimately decide to exercise any of its
subscription rights.
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.
Other Important Information
The description above includes only a summary of
certain key terms of the rights offering. The terms and conditions
of the rights offering are contained in a registration statement on
Form F-1, including the prospectus, regarding the rights offering
filed by the Company with the U.S. Securities and Exchange
Commission (“SEC”) that became effective on December 28, 2021.
A copy of the prospectus relating to the rights
offering along with additional materials related to the rights
offering will be mailed to the Company’s stockholders as of the
record date on or about January 14, 2022. Stockholders may also
obtain a copy of the prospectus free of charge on the SEC website
at www.sec.gov or by contacting the information agent for the
rights offering, Skyline Corporate Communications Group, LLC, at
1-888-316-7398 or apwc@skylineccg.com.
Certain information, such as the number of
securities issuable upon exercise of a subscription right and the
subscription price, will not be determined until the expiration of
the rights offering and will be announced in a subsequent press
release by the Company. The Company reserves the right to cancel or
terminate the planned rights offering at any time. 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 registration or qualification under the
securities laws of any such jurisdiction.
About Asia Pacific Wire & Cable
Corporation
Asia Pacific Wire & Cable Corporation is a
holding company incorporated in Bermuda with principal executive
offices in Taiwan that operates the Company’s business through
operating subsidiaries. Through its subsidiaries, the Company is
principally engaged in the manufacture and distribution (in
descending order of sales) of enameled wire, power cable, and
telecommunications products in Thailand, Singapore, Australia, the
People’s Republic of China, Hong Kong and certain other markets in
the Asia Pacific region. The Company also engages in the
distribution of certain wire and cable products manufactured by its
controlling shareholder, Pacific Electric Wire & Cable Co.,
Ltd., and third parties. The Company also provides project
engineering services in the supply, delivery and installation of
power cable. The Company’s 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.
Contact:Investor Relations
Contact:Skyline Corporate Communications Group, LLCLisa
Gray, Senior Account
ManagerOne Rockefeller Plaza, 11th FloorNew York, NY 10020Office: (646) 893-5835Email: lisa@skylineccg.com
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