The company, on Oct 14, entered into a placement agreement with SAC Capital and Maybank Securities, the placement agent and sub-placement agent, respectively, to initially raise $6 million by placing 15.38 million shares.
The placement price of 39 cents represents an 8.81% discount to the volume-weighted average price (VWAP) of 42.77 cents per share for trades done on Oct 9, which is the last full market day prior to the trading halt called.
On Oct 20, the placement was upsized to 20 million shares, due to “strong investor demand”. The new amount represents 15.3% of Reclaims Global’s existing issued and paid-up share capital.
According to Reclaims Global’s Oct 27 release, $4.5 million of the net proceeds will go towards pursuing new opportunities within the company’s excavation and projects segment while the remaining $3 million will be used for general working capital purposes to support ongoing business operations and fleet renewal programme.
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Chan Chew Leh, executive chairman of the company, called the placement a “key milestone” as the “macro growth momentum in Singapore’s construction industry, coupled with national investment in coastal protection initiatives, creates opportunities for Reclaims Global to deliver enhanced long-term value to our stakeholders”.
Tan Kok Huat, executive director and CEO says the company is “well-positioned” to pursue larger-scale projects and aims to expand its market presence and capture new business opportunities through its integrated and synergistic business model.
As at 11.20am, shares in Reclaims Global are trading 1 cent higher or 2.56% up at 40 cents.
