Hospitality company Transcorp Hotel has announced a closed period for its Right Issue which the company is using to raise funds. Transcorp Hotel is in debt and the management intends to use the capital raised from the Right Issue to fund the debt.
Note that the Right Issue is when existing shareholders of a company subscribe to buy new securities or shares in the company. Companies make this offer when they are in need of capital to grow their operation or any other business-related issue that needs funding.
Transcorp Hotel is currently utilising the fundraising option and has stated that the deadline for subscription of its securities will be next month, November 11, 2020. The company directed its dealing members to make returns of renunciation forms and monies received from shareholders that qualify to participate in the Rights before the deadline date.
However, in line with the Securities and Exchange Commission (SEC) approved timeline, dealing members have until November 13, 2020, to ensure the forms and monies are presented, as Transcorp Hotel said it won't extend the Offer deadline, "This is to notify Dealing Members of the Nigerian Stock Exchange that the closing date of the Transcorp Hotels Plc Rights Issue is Wednesday, November 11, 2020.
"Dealing Members are therefore requested to make returns of acceptance/renunciation forms and monies received from shareholders that qualify to participate in the Rights, on or before Wednesday, November 11, 2020, and at the latest on Friday, November 13, 2020, in line with the transaction timeline approved by the Securities and Exchange Commission (SEC).
"Please note that Transcorp Hotels Plc will be unable to extend the Offer. This is to ensure timely implementation of the use of proceeds which entails settlement of existing debt obligations. To this end, we kindly urge Dealing Members to adhere to the Offer timeline."