LEADER Environmental Technologies (LET) plans to raise S$2.31 million by selling 51.3 million new ordinary shares at 4.5 Singapore cents a piece, in a proposed private share placement.
The new shares represent 9.29 per cent of LET's existing issued share capital. The placement price is a 10 per cent discount to the weighted average price of the stock's shares of five Singapore cents, based on trades done on June 15.
The company has entered into placement agreements with seven individuals, who are "mainly business contacts and acquaintances of the company's executive chairman and chief executive officer, Lin Bai Yin", it said.
The proposed placement is expected to raise net proceeds of S$2.26 million, after deducting estimated expenses, which will be used for the construction and operation of new energy generation, water management and related environmental projects, and as general working capital.
LET said that it intends to comply with the minimum trading price requirement and intends to undertake a share consolidation. It will seek its shareholders' approval for this at an extraordinary general meeting to be convened immediately after the next annual general meeting in April 2016.