ITE Electric proposes a S$2.97 million share placement exercise

ITE Electric Co has entered into a conditional share placement agreement to issue 63.4 million new shares at S$2.97 million or 4.68 Singapore cents per share to three companies and 17 individuals.

The rationale for the proposed placement is to increase the company's resources to improve its cash flow and pursue acquisition or business opportunities.

It is also in line with the company's proposed name change to "Sunrise Shares Holdings Ltd" and will allow the company to develop the "Sunrise" brand and

diversify into new business segments, said the firm in an announcement to the Singapore Exchange.

The company intends to use the net proceeds from the placement exercise for general working capital purposes.

The placement price represents a discount of 10 per cent to the volume weighted average price of 5.2 Singapore cents on January 5 - the last full market day on which the shares were traded prior to the signing of the placement agreement on Jan 9.

The individual placees include former colleagues of ITE Electric's chief executive officer and executive director, Zhang Zhi Liang, current employees of the company's wholly owned Shenzhen Sunrise Development Limited and current directors of Shenzhen Sunrise.

The company has requested to lift the trading halt on Wednesday.