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BM Mobility raising US$500,000 for green energy business

MAINBOARD-LISTED BM Mobility is in the process of raising funds for its green energy business in Malaysia, which involves electric scooter sharing, it announced on Wednesday after market close. 

The group has been focusing on expanding its core business of green energy in the region since obtaining shareholders' approval in a Jan 2, 2018 extraordinary general meeting.

BM Mobility said it "is in active discussion with several interested investors" to raise US$500,000 in the form of redeemable notes through its wholly-owned unit BM Mobility Sdn Bhd (BMMSB) to fund the expansion of its electric scooter sharing business. The funds will be raised in stages.

Investors will have the option of converting the notes into BMMSB shares. Assuming all US$500,000 of the notes are converted, this will amount to 9.09 per cent of BMMSB's enlarged share capital.

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BM Mobility first launched its e-scooter sharing programme under BMMSB in August 2018, with 360 scooters having been deployed to date. "Since its launch, the e-scooter sharing business has demonstrated strong growth potential," said BM Mobility.

"Thus, it is ideal for the group to allocate more financial resources towards expanding its e-scooter sharing programme into more universities and other tourist locations in Malaysia."

The company advised shareholders to exercise caution in trading its shares "as the fundraising activity is subject to numerous conditions and there is no certainty or assurance as at the date of this announcement that the fundraising activity will be completed".

BM Mobility said it would make the necessary announcements on the fundraising activities as and when appropriate.

The counter closed down 0.1 Singapore cent or 14.29 per cent at 0.6 Singapore cent on Wednesday before the announcement.