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Spackman Entertainment proposes to place out 38.1m new shares at S$0.161 apiece

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SPACKMAN Entertainment Group on Thursday said it has entered into an agreement with UOB Kay Hian to be its placement agent, as the company sought to place out up to 38.1 million new shares at S$0.161 apiece.

SPACKMAN Entertainment Group on Thursday said it has entered into an agreement with UOB Kay Hian to be its placement agent, as the company sought to place out up to 38.1 million new shares at S$0.161 apiece.

The estimated net proceeds from the proposed placement after deducting expenses incurred is expected to amount to about S$5.95 million.

Spackman said that it intends to use the net proceeds for its working capital requirements and new business investments and acquisitions, in the respective proportions of 30 per cent and 70 per cent.

At S$0.161, the share price represents a discount of 9.75 per cent to the volume-weighted average price of S$0.1784 for each share, based on the trades done on the Singapore Exchange (SGX) on Feb 28 - the last full market day prior to the signing of the placement agreement.

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The placement shares, when allotted and issued in full, will represent roughly 9.55 per cent of the issued share capital of the company as at April 28, 2016, and the date of this announcement, and about 8.72 per cent of the enlarged issued and paid-up share capital upon completion.

Under the deal, a placement commission of 3 per cent of the gross proceeds raised is payable to UOB Kay Hian, the group said in a filing to the SGX.

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