The issue price represents a 5.73% discount to the volume weighted average price (VWAP) of Sanli’s share price, which traded at 12.73 cents on June 30, a day before the company called for a trading halt.
According to the July 2 release, the placement price stemmed from discussions with SAC Capital and took into account the prevailing market price of the shares among others.
The placement shares represents about 12.58% of Sanli’s existing share capital comprising 265.07 million shares as at July 2. It will represent about 11.17% of the enlarged share base of 298.4 million shares.
The proposed placement is not underwritten and will be undertaken via an exempt offering in Singapore in accordance with Section 272B of the Securities and Futures Act 2001.
As such, no prospectus, offer document or offer information statement will be issued by Sanli Environmental.
Sanli says it intends to use the net proceeds from the proposed placement for general working capital purposes, including funding the execution of ongoing engineering, procurement and construction (EPC) projects. A part of the proceeds may go towards reducing existing borrowings.
In Sanli’s view, the proposed placement is expected to enhance the group’s financial flexibility and broaden its shareholder base.
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After deducting estimated fees and expenses of around $93,500, Sanli will receive $3.91 million in net proceeds.
As at 11.36am, shares in Sanli are trading flat at 12.8 cents.
