Blumont Group plans rights issue of 1.43 billion new shares

SINGAPORE - The Blumont Group is proposing a renounceable non-underwritten rights issue of up to 1.43 billion new shares in company at 0.675 cents each to raise S$9.7 million.

Seventy per cent of the net proceeds will be used to make partial repayment to its creditor, Wintercrest Advisors LLC while the remaining 30 per cent will be used for working capital purposes.

Shareholders will be able to apply to one rights share for every two they own, the company said in a release on Thursday.

Blumont has a loan facility from Wintercrest from which, S$21.5 million in principal amount has been drawn down.