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The securities regulator has rejected the rights offer application of Gemini Sea Food, which was supposed to issue rights to bolster its paid-up capital, pay-off loans, and facilitate business expansion.
In February this year, the board of directors of the seafood exporter had decided to raise Tk 1.28 billion through issuing 21.3 million rights shares.
“Bangladesh Securities and Exchange Commission (BSEC) is not in a position to give consent to the company raising capital through issuance of right shares,” according to a regulatory filing on Thursday.
However, the company did not mention why the regulator rejected their application.
Earlier, Gemini Sea Food had applied for issuing two rights shares against existing one ordinary share with an offer price of Tk 60, including Tk 50 as a premium.
Currently, the company’s paid-up capital is Tk 106.84 million, while authorised capital is Tk 400 million.
Despite the news, its stock price rose 1.15 per cent to reach Tk 229.50 after two hours of trading at 12:00 noon at the Dhaka Stock Exchange.
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