Cathay Cineplexes operator mm2 Asia’s 1.9-billion share placement falls through

[SINGAPORE] A S$14 million fundraising plan by beleaguered Cathay Cineplexes operator mm2 Asia via the placement of some 1.9 billion shares has fallen through, the entertainment company said on Wednesday (Apr 1).

The placement agreement, which aimed to offer shares at a minimum of S$0.008 apiece, “has lapsed and terminated and is of no further effect”, mm2 Asia said.

This is because conditions under the agreement were not satisfied by the extended cut-off date of Tuesday.

“Following the voluntary suspension of trading in the company’s shares on Nov 11 and the subsequent grant of the moratorium order, the company’s circumstances changed materially and the conditions precedent under the placement agreement could not be fulfilled,” mm2 Asia said in a later announcement on Wednesday night.

The group added that the original rationale and basis for the placement agreement with UOB Kay Hian is “no longer applicable” as its fundraising strategy has been superseded by a proposed transaction between itself and private equity fund Hildrics Asia Growth Fund VCC.

This proposed transaction comprises a separate share placement plan and a rights issue, announced on Mar 9 as part of mm2 Asia’s broader restructuring. Then, the group said it planned to partner MMRA, a wholly owned subsidiary of Hildrics, to raise funds for restructuring and working capital needs.

The lapse of the earlier placement agreement has no bearing on the proposed MMRA transaction, mm2 Asia said, adding that the latter proposed deal remains in place.

mm2 Asia does not expect the lapse and termination of the placement agreement to have material adverse impact on its consolidated net tangible assets per share and earnings per share for the financial year ending Mar 31, 2027.

In January, it received a S$200,000 payment demand, adding to a growing list of payment demands it has received throughout 2025. This was from solicitors representing Ace Financial Services, a Singapore-based accounting firm, in relation to alleged non-payment of the S$200,000 sum and interest and legal costs.

SEE ALSO

Golden Village to close Tiong Bahru cinema after March 29

‘We’ve seen the worst-case scenario’: How Indonesia’s Cinema XXI navigated crisis and change

Cathay Cineplexes operator mm2 Asia to raise funds for debt repayment via proposed share placement

Proposed placement

The debt-saddled company entered the agreement with UOB Kay Hian on Jul 4, 2025 as part of “ongoing efforts to strengthen its financial position, including reducing its liabilities, and improving its cash flow and working capital.

Under the scheme, it aimed to procure subscriptions for around 1.9 billion ordinary shares to raise net proceeds of around S$14 million. Of this, S$7.5 million was to be used for the repayment of debts and liabilities, while S$6.5 million would be allocated for general working capital.

The placement price was to be set at either a minimum price of S$0.008 per share, or the volume-weighted average price (VWAP) per ordinary share of the company’s shares traded on the Singapore Exchange (SGX) over 30 consecutive days before the date shareholders approve the placement.

The minimum placement price represented a premium of around 14.3 per cent to the VWAP of S$0.007 for trades done on the SGX for the full market day on Jul 4, 2025.

If the placement had succeeded, the 1.9 billion placement shares would account for around 22.3 per cent of mm2 Asia’s enlarged share capital.

Shares of the company last closed at S$0.003 before the counter was suspended on Nov 11, 2025.