Mercator Lines forfeits warrants

Mercator Lines Ltd has announced that the Company had allotted 2,85,00,000 convertible warrants on October 25, 2007 to one of its promoters, pursuant to the resolution passed by the shareholders at their Extra Ordinary General Meeting held on October 11, 2007 in accordance with SEBI guidelines on preferential issue. Each warrant of a face value of Rs 5.85 was carrying option to subscribe for 1 equity share of the Company at a price of Rs 58.50 (inclusive of premium of Rs 57.50).

Further the Company has informed that, as the promoter has not exercised the option to convert the warrant, the right to apply for equity shares has lapsed on April 24, 2009 as per terms of the issue. Accordingly, all 2,85,00,000 warrant stands cancelled and consequently, the entire amount received thereon from the warrant holder stands forfeited.

The stock closed the day at Rs.36.70, up by Rs.1.60 or 4.56%. The stock hit an intraday high of Rs.37.45 and low of Rs.34.75.

The total traded quantity was 3283722 compared to 2 week average of 3001034.

Source : Equity Bulls

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