Will YuuZoo's new funding deal wreck its share price?
IT may come across as a simple deal, but YuuZoo Corp's recently announced S$30 million funding facility from US-based fund GEM Global is by no means heartening for investors saddled by the anaemic showing of its stock since its debut on the Singapore Exchange a year ago.
It also signals limited borrowing options for YuuZoo, debt free as it is, which would need capital to acquire assets to grow its social e-commerce networks or business of "virtual shopping malls".
The deal allows YuuZoo, as an when and if it needs cash over the next three years, to tap the funds provided under the facility by issuing new shares to GEM Global at a 10 per cent discount to prevailing market price on the date of the drawdown request.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps
OCBC should put its properties into a Reit and distribute the trust’s units to shareholders
Why a stronger US dollar is dangerous
An overstimulated US economy is asking for trouble
Too many property agents? Cap commissions on home sales
Time to study broadening of private market access