ASTI Holdings has proposed the placement of 128 million new ordinary shares in the capital of the company for 2.5 cents per share, raising up to $3.2 million.
The placement shares represent about 19.55% of the existing issued and paid-up share capital of the semiconductor manufacturing services company, comprising 654,731,486 shares.
The company says that the placement price represents a premium of approximately 78.57% to the volume weighted average price (VWAP) of 1.4 cents per share for trades done on the shares on the SGX-ST for the full market day on July 4, 2022 being the last full market day prior to the trading suspension called by the company.
The placement price also represents a discount of 51.42% to the latest group’s audited net tangible assets (NTA) as of Dec 31, 2024, of $33,695,000.
ASTI Holdings says that it will rely on the existing general share issue mandate approved by shareholders at an EGM held on Aug 15, 2025, which saw that the aggregate number of shares and convertible securities is no more than 130,946,297 shares.
As such, the proposed issuance of 128,000,000 new shares will be within the limits of the general mandate and specific approval of the shareholders will therefore not be required, the group notes.
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In conjunction with the resumption of trading of shares, ASTI is of the view that it is an opportune time to undertake the proposed placement to fund its business expansion.
This includes potential new businesses with existing customers, research and development on equipment to improve the yield rate for our products and working capital.
About 60% of the net proceeds from the proposed placement will be used for business expansion, 30% for research and development, and 10% for working capital.
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The effects of the proposed placement on the company’s share capital will result in an increase of shares to 782,731,486 shares excluding treasury shares.
Earnings after the proposed placement will widen to a net loss of $24.7 million, and earnings per share will decrease to a net loss per share of 3.15 cents.
