Proposal by mm2 Asia to raise as much as $40m via share placement
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V3 Group founder Ron Sim is a substantial shareholder of mm2 Asia.
ST PHOTO: LIM YAOHUI
Tay Peck Gek
SINGAPORE - A proposal has been made by mm2 Asia to raise up to $30 million through a placement of new shares at $0.017 per share, with an option to issue an additional $10 million of placement shares at the same issue price.
V3 Group intends to subscribe to not less than $15 million of the placement, said mm2 Asia in a regulatory filing on Aug 2 night, with the former potentially becoming the single largest shareholder of the media entertainment and content company with an 18 per cent equity stake.
V3 Group is led by Mr Ron Sim – the founder of Osim International known for its massage chairs – who also owns brands including TWG Tea and Bacha Coffee through subsidiaries.
Mr Sim is a substantial shareholder of mm2 Asia, holding 228,402,950 shares or about 5.5 per cent of the existing issued and paid-up share capital.
The placement shares will have the same rights and benefits as the existing and outstanding shares.
The price of the shares to be placed represents a premium of approximately 13.3 per cent to the volume weighted average price of $0.015 for trades done on the Singapore Exchange for the full market day on Aug 2.
The company’s market capitalisation stood at $62.8 million as at Aug 2’s closing price of $0.015, which was 11.8 per cent lower than the preceding closing price.
The placement shares and the upsize option represent approximately 56.2 per cent of the existing issued and paid-up share capital of mm2 Asia as at the date of this announcement and will represent approximately 36 per cent of the enlarged issued and paid-up share capital.
The net tangible assets per share would be $0.0106 after the placement, according to the pro forma calculations, up from $0.0073.
The company will use the proceeds to strengthen its financial position and support working capital requirements.
Mr Melvin Ang, executive chairman of mm2 Asia, said he looks forward to working with V3 Group on projects of mutual benefits and interests.
The corporate action, subject to shareholder approval at an extraordinary general meeting as well as terms and conditions of the placement agreement, is expected to be completed by Oct 31. THE BUSINESS TIMES
