Magnus Energy to place out 1.31b new shares to raise S$1.18m

SINGAPORE - Magnus Energy Group on Thursday (March 8) entered into 10 placement agreements with individuals and companies which will see Magnus Energy allot and issue 1.31 billion new ordinary shares at the issue price of S$0.0009 per placement share, resulting in an aggregate cash consideration of S$1.18 million.

Magnus attributed the rationale for the share placement to the need to bolster its working capital position and to inject funds to grow the business, it said in a filing with the Singapore Exchange on Thursday night.

The issue price of the placement represents a discount of about 10 per cent of the volume-weighted average price of S$0.001 of the company's shares traded on March 8.

The placement shareholders are Blue Water Engineering with a 250 million allotment; Chung See Mooi, Yeo Chee Seng and Idola Cakrawala International holding 200 million shares each; Ho Geok Bin and Molly Ang Siew Teng with 100 million shares each; Ong Chin Yew with 90 million shares; Offshore Capital Solutions Limited 60 million, and Tan Bak Choon and Lai Cher Foong with 50 million shares each.

Following the issue, the placement shares represent about 10.37 per cent of Magnus Energy's enlarged share base of about 12.63 billion.

The proceeds from the placement will be used as general working capital for Magnus Energy and as funds for a microalgae plant that is nearing its completion, the company said.

Its shares closed at S$0.001 on Thursday.