SINGAPORE - Catalist-listed 3Cnergy has entered into a subscription agreement with Peter Lim-backed Catpital Private, which has agreed to subscribe for around 101.64 million new shares at $0.022 per share.
The price is a discount of around 7.56 per cent to the weighted average price of $0.0238 for trades done on May 14, the full market day before the signing of the agreement. This will enable it to raise net proceeds - after expenses - of nearly $2.24 million.
Catpital Private is an investment holding company owned by billionaire investor Peter Lim.
This comes after 3Cnergy completed a 1-for-1 rights issue, on the basis of one rights share at 2.2 cents for every share held, where 93.4 per cent of the offering was subscribed. It had raised $31.5 million from the rights issue.
Of the 1.53 billion rights shares that were offered, the company received valid acceptances for 1.43 billion rights shares and excess applications for 2.1 million rights shares. Excess applications were satisfied from the 104 million rights shares that were not validly taken up or accepted by shareholders. At the close of the rights issue, some 101.64 million rights shares remained unsubscribed.
3Cnergy said: "The board is of the view that it is in the company's best interests if subscribers could be produced for such number of shares equivalent to the unsubscribed rights shares in order that the company may raise an anount equivalent to the proceeds of the rights issue as if all the rights shares had been fully subscribed for."
The company said that it intends to use the net proceeds to repay term loans and for working capital.
The 101.64 million shares will represent 3.31 per cent of 3Cnergy's enlarged issue and paid up share capital after the share placement and rights issue.