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Chinese firm to invest US$20m into Dragon Group unit
DRAGON Group International (DGI) on Thursday announced that a strategic investor from China, Zhuhai Yinlong Energy Co (YLE), will invest US$20 million into DGI's subsidiary EoCell.
With the US$20 million, YLE will subscribe for 940,000 new ordinary shares in EoCell, representing about 40 per cent of the total enlarged share capital of EoCell.
Currently, DGI holds 93 per cent stake in EoCell and based on the enlarged share capital, it will hold 40 per cent stake, similar to that of YLE and in theory worth US$20 million as well. The remaining 20 per cent stake of EoCell will be held by the key management of EoCell.
Michael Loh Soon Gnee, executive chairman and CEO of DGI, said: "The strategic partnership with YLE will provide EoCell with additional financial resources and broader market access, open doors for us to license the EoCell technology to other interested parties in the green energy & electric vehicle segment, and set the stage for future growth stimulated by multiple synergies between EoCell and YLE.
"This also unlocks the value of EoCell, valuing it at US$50 million, as compared to DGI's current market capitalisation of approximately US$4 million."