Addvalue Technologies proposes one-for-three rights issue

ADDVALUE Technologies Ltd said that it is undertaking a renounceable non-underwritten rights issue of up to 395.79 million new shares at an issue price of 3.5 Singapore cents apiece.

The rights issue will be undertaken on the basis of one rights share for every three existing shares held by shareholders of the company.

The issue price represents a discount of about 49 per cent to the weighted average price of 6.84 Singapore cents for trades done on Oct 30, 2015, which was the full day immediately preceding this announcement when the shares were traded.

Addvalue said that it will be using the proceeds from the rights issue to pare down its debt as well as for general working capital purposes.

Meanwhile, the completion of a proposed disposal of subsidiary Addvalue Communications Pte Ltd, which has been delayed for two years, is still subject to further negotiations with a Chinese buyer, it added.