YAMADA Green Resources Limited has proposed to undertake a renounceable underwritten rights issue of 270.33 million new ordinary shares at an issue price of seven cents apiece.
This is slated to raise gross proceeds of about S$18.9 million.
The rights issue is based on one rights share for every two existing ordinary shares held by shareholders as of the book closure date.
Yamada said it has appointed UOB Kay Hian Pte Ltd as the manager and underwriter of the rights issue.
A general share issue mandate was approved by shareholders at the last annual general meeting held on Oct 29, 2014.