DIGILAND International has substantially scaled down a proposed share placement to a maximum of 2.05 billion shares. This comes a day after it said that it would issue up to a total of 5.8 billion new shares, at an issue price of 0.1 of a cent, as part of separate subscription agreements with Smartful Global Holdings, Lee Chee Keet and Chia Ai Looi.

The company said that the general share issue mandate - which was approved by its shareholders at its annual general meeting on Oct 29, 2012, before the completion of a rights issue in December 2012 - allows the board to issue a maximum of some 2.05 billion new shares.

This means that the net proceeds of the placement would fall to just under $2 million - from $5.78 million under the original agreement - though the money will still be used for the group's general working capital, as originally intended. Under the revised subscription terms, Smartful will take up a maximum of 846 million shares, instead of 3.3 billion under the original agreement. Mr Lee will subscribe to a maximum of 700 million, instead of two billion, while Ms Chia will subscribe to an unchanged maximum of 500 million shares.