Green Build Technology is proposing the placement of 50 million new ordinary shares in the company at 1.53 cents per share, with two subscribers.
The placement shares will amount to an aggregate sum of $765,000.
The issue price represents a discount of 10% to the volume weighted average price of 1.70 cents per share based on trades done on the SGX-ST on Oct 3.
The two subscribers are Equity Consultancy (ECPL), who has subscribed for 15 million shares worth $229,500, and United Hope (UHPL), who subscribed for 35 million shares for $535,500.
ECPL is in the business of management consultancy, while UHPL is in the business of investment holdings.
Following the completion of the placement shares, the company’s issued share capital will increase from 292,259,462 shares as at the date of this announcement to 342,259,462 shares.
Green Build says that the placement exercise is to raise funds to strengthen its financial position and the net proceeds will be allocated for general capital purposes. It intends to use the funds for payment of professional fees and listing expenses, payment of directors’ fees and remuneration, of which 47.14% of net proceeds will be allotted to this, and general working capital.
Earnings per share of the group is expected to decline to 0.93 RMB cents.
