Metech International Limited (SGX:V3M
) announced that it has entered into two separate subscription agreements with Ma Ong Kee and Raffles Capital respectively, whereby the company will issue 100 million shares to both parties at the price 4 cents per share.
The placement price of 4 cents translates to a premium of around 2.56% over the prevailing volume weighted average price of 3.9 cents per share for trades done on June 26. Both Ma and Raffles Capital will each take up 50 million shares.
Right after the placement, both parties will each own a 13.75% stake in Metech.
According to the company, Ma is a prominent Singapore-based businessman and corporate director, primarily known for his extensive career in private equity and corporate finance.
Meanwhile, Raffles Capital is wholly owned by Dr Charlie In Nany Sing was involved with several investment and advisory deals in Australia and China that covered property, solar energy REIT, agriculture, coal, copper, gold mining and healthcare services.
After deducting the estimated expense for this placement, Metech expects to receive net proceeds of around $3.98 million and it intends to utilise the proceeds for general working capital purposes.
See also: FJ Benjamin to raise $302,400 by placing out new shares to Richard Eu and Dr Rosslyn Leong
Shares of Metech closed 1.1 cents down, or 25% lower at 3.3 cents on June 26.
