Advancer Global to raise S$22m in tie-up with Tokyo-listed Fullcast

EMPLOYMENT services company Advancer Global on Friday said that it has entered into an agreement to allot and issue 65 million new shares in the company at S$0.34 each to Tokyo-listed human resource firm Fullcast Holdings.

This will raise net proceeds of about S$21.78 million for the expansion of its business operations and for working capital requirements.

The subscription shares represent about 25.19 per cent of Advancer's enlarged issued and paid-up share capital. The subscription price is also a 10 per cent premium to the one-month average closing price of the shares prior to May 11, the day the Memorandum of Understanding was signed between both sides.

Fullcast was introduced to the company by SAC Capital. Upon completion of the subscription, Fullcast will be entitled to nominate one person as a non-executive director to Advancer's board.

In conjunction with this, Advancer also signed a separate agreement with Fullcast on Friday to form a strategic alliance. Both sides have agreed to discuss specific details relating to the setting up and operation of a joint venture (JV) company in Japan in the near future to provide foreign labour staffing and employment services in Japan.

Advancer said the proposed JV will help to address some of the labour shortages Japan is currently facing.

Gary Chin, Advancer's CEO and executive director, said the proposed subscription and strategic alliance will strengthen the company's financial position by reducing its bank leverage and increasing its capital base significantly, thus improving its cash flow.

It will also help the company to expand its employment business in Japan, as it foresees a large demand for workers required in the country's ageing population and labour shortage in the coming years.

"We are excited and look forward to this partnership with Fullcast to bring us to the next stage of growth," he said.

Advancer's shares did not trade on Friday. They last closed at S$0.305 on Thursday.