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8Telecom to issue 18.74m shares via placement at S$0.054 each

8TELECOM International announced after trading hours on Thursday that it has entered into two subscription agreements to issue 18.74 million new ordinary shares at S$0.054 each, for a sum of about S$1.01 million.

The shares will, collectively, represent about 16.66 per cent of the company's enlarged share capital after the completion of the placement.

Following the proposed placement, IT company PTL Technology will receive 6.67 per cent, while investment holding firm Xin Wen will receive 9.99 per cent of the company's enlarged share capital.

The subscription price of S$0.054 represents a discount of 10 per cent to the volume weighted average price of S$0.06 per share, based on trades done on the Singapore Exchange for the full market day on Nov 2, 2017.

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The net proceeds from the proposed subscription after deducting estimated expenses will come up to about S$986,960. The company said that it will be used for wages, salaries and other head office operating expenses, professional fees including auditor fees and company secretary fees, and other trade payables.