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Addvalue to place up to S$10m of shares at S$0.04 each
ADDVALUE Technologies is raising up to S$10 million through a stock placement of 250 million shares at four Singapore cents apiece, the satellite communications company announced on Monday.
The issue price represents a 0.5 per cent discount to Addvalue's volume-weighted average trading price of 4.02 Singapore cents on Monday. The stock last traded at 4.1 Singapore cents on Monday.
KGI Securities has been appointed as placement agent to sell the shares on a best-efforts basis. If fully subscribed, the placement shares will represent about 12.37 per cent of Addvalue's enlarged share capital.
Addvalue said that it will use about S$6 million of the proceeds for a capability development programme and the remainder for working capital. Addvalue had previously announced that it received a grant from Singapore's Economic Development Board on the condition that Addvalue raise a certain amount of funding in debt or equity to support the development of its inter-satellite data relay system. The company also plans to support a new supply contract and its solutions for fishing vessels.
"The company deems it necessary to undertake the proposed placement to raise funds to strengthen its balance sheet as well as to meet its funding and working capital requirements," Addvalue said in its announcement.