Media entertainment and content company mm2 Asia says it has let a proposed placement of $15 million with UOB Kay Hian lapse after the terms of the placement agreement were not satisfied.
According to a filing made by mm2 Asia on April 1, the lapse and termination of the agreement is not expected to have a material adverse impact on the company’s consolidated net tangible assets per share and earnings per share for the financial year ending March 31, 2027.
mm2 Asia first entered into the agreement with its placement agent UOB Kay Hian on July 4, 2025. The placement round would have seen mm2 Asia issue 1.875 billion shares at 0.8 cents apiece. If successful, the placement shares would have made up 22.3% of the company’s enlarged issued and paid-up share capital.
In an earlier filing on Oct 3, mm2 Asia said it had extended the placement agreement’s cut-off date by six months to March 31 from Sep 30.
The placement agreement would have offered a lifeline to the cash-strapped company which has received multiple letters of demand for payment over the past few months. After deducting the placement fees, mm2 Asia planned to use $7.5 million of the proceeds to repay its debts and liabilities, and the remaining $6.5 million to finance general capital working purposes.
On March 9, mm2 Asia announced that it was pursuing a separate $15 million placement arrangement with Hildrics Asia Growth Fund VCC. As part of the deal, mm2 Asia will also be raising $10 million from existing shareholders via a rights issue. The VCC belongs to Hildrics Capital, an existing investor in businesses related to mm2 Asia.
In a follow up clarification announcement on April 1, the company says the lapse and termination of the placement agreement does not reflect any change in the company’s restructuring strategy or its ongoing efforts to secure fresh capital, and that the deal with Hildrics Capital is separate.
mm2 Asia suspended trading of its shares on Nov 11 after its board assessed that it could not prove that it is able to continue as a going concern. Its shares last traded at 0.3 cents on Nov 10.
