You are here

Sunmoon places out S$15m of shares to Chinese online group Shanghai Yiguo

Tuesday, January 3, 2017 - 08:19

sunmoon.jpg
Sunmoon Food Company, a fresh food distributor, has agreed to place out S$15 million of new shares and another S$9 million of warrants to Chinese online shopping group Shanghai Yiguo E-Commerce.

SUNMOON Food Company, a fresh food distributor, has agreed to place out S$15 million of new shares and another S$9 million of warrants to Chinese online shopping group Shanghai Yiguo E-Commerce.

The proceeds will be used to boost the group's working capital, it said in an exchange filing late on Monday night.

As part of the agreement, it will issue 333.3 million new shares at 4.5 Singapore cents - representing a 55 per cent discount to its average share price of 10 cents on Dec 30. With these will come 166.7 million free unlisted warrants that each carry the right to subscribe for a new ordinary Sunmoon share for 5.4 cents each, for a period of three years.

When allotted and issued in full, the placement shares and warrant shares will represent about 61 per cent of Sunmoon's enlarged share capital.

sentifi.com

Market voices on:

The firm said that the S$23 million in net proceeds will provide it with sufficient working capital to ensure business continuity, as it sells investments related to its discontinued dehydrated produce business and shifts towards an asset-light consumer-centric business model.

Sunmoon will be seeking shareholders' approval at an extraordinary general meeting.

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom