SUNMOON Food Company on Friday said it will place out S$15 million in new shares to Shanghai Yiguo E-Commerce, a Chinese fresh food retailer with a "strategic partnership" with Alibaba.
Following the placement, the investor will hold about 51.1 per cent of the enlarged share base. The placement involves 333 million shares at S$0.045 per placement share.
The placement shares also come attached with 167 million free unlisted warrants, each carrying the right to subscribe one new share at S$0.054. The rights of the warrants may be exercised in the three years following the date of issue of the warrants.
Shanghai Yiguo E-Commerce has been an existing customer of SunMoon since October 2015. It did not elaborate on its supposed ties with Alibaba.