mm2 Asia unit secures S$3m investment from SPH and two other investors

A SUBSIDIARY of mm2 Asia Ltd has secured interest from three investors to invest S$3 million in total into the unit.

UnUsUaL Pte Ltd has on Nov 18 entered into a binding term sheet with Singapore Press Holdings (SPH), Apex Capital Group Pte Ltd and Maxi-Harvest Group, said mm2 Asia in an announcement on Friday night.

Under the agreement, each of these investors will subscribe to a mandatory convertible note for two years for S$1 million.

The subscription amount will be converted into ordinary shares in UnUsUaL upon the unit's listing on the Singapore Exchange, at a 15 per cent discount to the initial public offering price. SPH AsiaOne Ltd will also be given an option to subscribe for more pre-IPO shares, such the group owns 5.5 per cent of UnUsUaL before the listing.

If the proposed listing does not materialise within two years, all the investors will be given a coupon amounting to 8 per cent a year at maturity.

CEO of UnUsUaL Leslie Ong said that the investment will allow the firm to tap on SPH's network in the region to promote concerts organised by the company. "Both Apex Capital and Maxi-Harvest are reputable in the investment community which is fundamentally important too," he added.

SPH deputy CEO Anthony Tan said that the proposed partnership, besides creating new business opportunities for SPH, will help raise the profile of its multiple media platforms, enable the firm to forge stronger ties with existing readers and customers, as well as extend its reach to a wider audience.