Former Cathay Cineplexes operator mm2 Asia’s $14 million fund-raising plan falls through

SINGAPORE - A $14 million fund-raising plan by former Cathay Cineplexes operator mm2 Asia to raise monies for debt repayment through a share placement has fallen through, the entertainment company said on April 1.

The placement agreement, which aimed to offer some 1.9 billion shares at a minimum of 0.8 cent apiece, “has lapsed and terminated and is of no further effect”, mm2 Asia said.

This is because conditions under the agreement were not satisfied by the extended cut-off date of March 31.

This comes as the company on March 9 announced a separate share placement plan, alongside a rights issue, to raise funds for restructuring and working capital needs through a partnership with private equity fund Hildrics Asia Growth Fund VCC.

In January, mm2 Asia received a $200,000 payment demand, adding to a growing list of payment demands it had received throughout 2025. This was from solicitors representing Ace Financial Services, a Singapore-based accounting firm, in relation to alleged non-payment of the $200,000 sum and interest and legal costs.

The company’s placement plan was meant to improve cash flow and support its working capital requirements.

Under the scheme, it aimed to procure subscriptions for around 1.9 billion ordinary shares in its share capital, to raise net proceeds of around $14 million. Of this amount, $7.5 million was to be used for the repayment of debts and liabilities, while $6.5 million would be allocated for general working capital purposes.

If the placement had succeeded, the 1.9 billion placement shares would account for around 22.3 per cent of mm2 Asia’s enlarged share capital.

Cathay Cineplexes officially ceased operations and entered creditors’ voluntary liquidation in September 2025, owing millions in rental arrears.

Shares of mm2 Asia last closed at 0.3 cent before the counter was suspended on Nov 11, 2025. THE BUSINESS TIMES