Huationg Global plans to raise up to $7.08 million via a placement at 60 cents each so as to raise funds to take on more projects.
The company has appointed CGS International to help place out 11.8 million new shares, which is equal to 6.6% of the existing share base. Assuming all new shares are issued, Huationg's share base will increase to just over 189 million shares.
The placement shares are priced at a discount of 8.73% to the volume weighted average price of 65.74 cents for trades done on Jan 23.
According to Huationg, it now has enough capital for existing projects but it believes that the additional funds will put it in a better position to manage near-term market conditions and pursue new growth.
Upon completion of the placement, its NTA per share will dip on a pro forma basis from 62.36 cents to 62.21 cents.
