SINGAPORE - Sino Grandness Food Industry Group said on Friday (June 14) that has completed half of its share placement to JW Capital Group as the investor needed more time to remit the remaining $3.4 million, due to capital controls in China.
Placement of the remaining 85 million shares has been extended to July 15, subject to approval from the Singapore Exchange, the Chinese canned vegetable and fruits producer said in a regulatory filing before the market opened.
Out of S$3.4 million in net proceeds from the partially completed placement, 60 per cent or $2.01 million will be used for repaying outstanding sums to Soleado Holdings, while 40 per cent or S$1.34 million will be used for general working capital purposes.
Estimated expenses from the placement are expected to be around $50,000.
Sino Grandness' placement of 170 million shares at $0.04 apiece to JW Capital Group had looked to raise net proceeds of around $6.8 million. This was to repay outstanding sums to Soleado Holdings and strengthen its financial and working capital.
The issue price represents a discount of 6.98 per cent to Sino Grandness' volume-weighted average price of $0.043 for trades done on March 22.
The 170 million placement shares also represent 17.36 per cent of the company's existing issued share capital and about 14.79 per cent of its enlarged share capital after the proposed placement.
Sino Grandness said in March that JW Capital Group, which now holds no shares in the company, had wanted to be a strategic investor in the company and agreed to subscribe for the placement shares as part of its business strategies.
Sino Grandness shares were trading flat at 4.7 cents on Friday as at 9.44am.