OxPay Financial is proposing to issue 35.4 million new shares to Tee Wee Sien (or Zheng Weixian), an existing shareholder of the company, at an issue price of 1.197 cents apiece. The company entered into a share subscription agreement with Tee on May 27. The agreement will cost Tee a total of $423,857.88.
The issue price represents a discount of 10% to the volume weighted average price (VWAP) of 1.33 cents per share for trades done on May 27.
Tee currently holds 11.2 million shares in the company, representing a stake of about 4.06%.
According to OxPay Financial, Tee expressed an interest to further invest in the company. He has confirmed that he will not be holding the new shares on trust or as a nominee.
Following the completion of the share subscription, Tee will hold a total of 46.6 million shares or 14.97% of OxPay’s enlarged share capital.
After the share subscription, the net loss attributable to the company’s equity holders will deepen to $3.106 million, from $3.078 million as at the FY2024 ended Dec 31, 2024, although loss per share will be reduced to 1 cent from 1.12 cents.
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The group’s net tangible assets (NTA) will increase to $1.49 million up from $1.09 million as at FY2024, while NTA per share will increase to 0.48 cents from 0.40 cents before.
Tee is a substantial shareholder of Mainboard-listed Oxley Holdingsand is a business associate of Ching Chiat Kwong, a controlling shareholder of both OxPay Financial and Oxley Holdings.
No new shares were converted from the convertible loan facility of $2 million granted in January. The sum was drawn down on April 4.
As at 9.25am, shares in OxPay are trading 1.5 cents higher or 115.39% up at 2.8 cents.
