Cirtek requests voluntary suspension for TECHW ahead of delisting

Cirtek [TECH 1.68, up 5.7%; 248% avgVol] [link] requested the PSE to suspend its Bonus Detachable Warrants [TECHW 0.08, up 85.7%; 630% avgVol] on August 13. TECHW holders have until August 16 to exercise their options before the warrants are scheduled to automatically delist on August 19. Any unexercised warrants will expire if they are not exercised before the end of the Exercise Period on August 16.

MB bottom-line: The TECHW warrants gave holders the right to convert each TECHW share into one TECH share at an exercise price of P5.50/share. Back when these warrants were sold in 2021, TECH’s price was hovering around the P6.00 to P6.40 range, so the right to convert a TECHW share to a TECH share for just P5.50 had value. Unfortunately for TECHW buyers, TECH’s share price was never higher than the day the prospectus for the TECHW shares was released. TECH was ~P3.80/share by the end of FY21, ~P2.95 by the end of FY22, ~P1.60 by the end of FY23, and is currently floating sideways at P1.68/share. The warrants were a fantastic deal for TECH’s owner, Jerry Liu, who was able to use the bonus detachable warrants (and some fluffy news releases about potentially listing TECH in the US) as an incentive to lure more buyers into purchasing shares in the stock rights offering that grossed P1.3 billion for the company. TECHW hit the market trading at P1.36/share in 2021 but closed yesterday at P0.078/share.

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