Find out more at btsub.sg/btdeal
You are here
SunMoon receives in-principle nod to list placement shares, warrants
SUNMOON Food Co has received in-principle approval from the Singapore Exchange (SGX) to list the shares and warrants required for a S$23 million placement to China online shopping group Shanghai Yiguo E-Commerce Co.
The fruit distributor is also amending the terms of the placement agreement to protect Shanghai Yiguo from any issuance of dilutive equity derivatives.
SunMoon in October 2016 agreed to place 333.3 million new shares at 4.5 Singapore cents each and 166.7 million warrants to Shanghai Yiguo. Each warrant will be exercisable into one share each at a strike price of 5.4 Singapore cents.
The placement agreement included a possible issuance of additional shares if SunMoon issues equity derivatives with exercise or conversion prices below 5.4 Singapore cents such that Shanghai Yiguo will not be worse off.
SunMoon was also required to top up the number of shares if there are losses from SunMoon's ownership and disposal of dormant subsidiaries.
Under the new amendment, the price for each adjustment share will no longer be fixed at 4.5 Singapore cents, but may be adjusted for dilutive issues of equity derivatives. SunMoon has also undertaken not to issue equity derivatives that are dilutive to Shanghai Yiguo.