Car dealer EuroSports Global has jumped on the secondary fund-raising bandwagon, raising gross proceeds of $1.99 million by placing out 26.5 million new shares at 7.5 cents each.
The shares will be sold to another car dealer Align Auto, beneficially owned by one Kuah Zi’En and HRT Corporation.
At 7.5 cents, the placement price is 100% premium over EuroSports' last traded price of 3.74 cents before this placement announcement.
The placement shares will expand EuroSports' share base by 10%.
According to the company, the placement is so that it can strengthen its financial position, given that it was in a negative working capital position for the year ended March.
