Pioneer Distilleries cancels warrants & forfeits upfront money

Pioneer Distilleries Ltd has announced that the Company has allotted 7,00,000 convertible warrants on December 03, 2007 to Promoters and non-promoters, pursuant to the Special Resolution passed by the shareholders on October 25, 2007, at a price of Rs 53/- per warrant after the receipt of upfront money, which is more than 10% of the issue price, and in respect of which in-principle approval was granted by the Stock Exchanges.

Each warrant was convertible into one Equity Share of the face value of Rs 10/- at the option of the warrant holders, at any time prior to expiry of 18 months from the date of allotment of the warrants i.e., June 02, 2009.

The Board of Directors at their meeting held on June 05, 2009 took note that the Warrant holders have not exercised their right for conversion of 6,70,000 warrants into shares within the time stipulated under the preferential guidelines and accordingly the aforesaid warrants now stands lapsed and the amount of Rs 96,32,527/- being the amount received upfront from the warrant holders, which is more than 10% of the issue price stands forfeited, as per the terms of the issue.

The stock closed the day at Rs.31.90, up by Rs.1 or 3.24%. The stock hit an intraday high of Rs.31.90 and low of Rs.30.75.

The total traded quantity was 3213 compared to 2 week average of 9119.

Source : Equity Bulls

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