Penny stock Elitecon International was locked in a 5% upper circuit on Wednesday, 7 October, after the company announced that its board will meet on 12 October to consider a proposal for raising funds.
According to the company’s exchange filing, the board will consider and, if deemed appropriate, approve a fundraise through the issuance of equity shares and/or other eligible securities.
The proposed fundraising could include instruments such as preference shares, convertible or non-convertible debentures, warrants and other securities convertible into or exchangeable for equity shares.
The company said the fundraise may be undertaken through one or more permitted routes, including a qualified institutions placement (QIP), preferential issue, private placement, rights issue, further public offer or debt issue, subject to applicable laws and regulatory approvals.
The board will also consider other matters related to the proposed fundraising, including the issue size, pricing mechanism, type of securities, timing and mode of issuance, as well as the appointment of intermediaries and advisers.