Equation Summit to raise S$3.8m from placement

EQUATION Summit Limited has agreed to issue 380 million new shares to three investors for S$3.76 million.

The subscription price of 0.99 Singapore cents represents a 10 per cent discount to the volume weighted average price of 1.1 cent for trades done on the shares on Nov 23 before a trading halt.

The group has confirmed that the subscription would not result in any transfer of controlling interest in the company.

These three investors are Teo Khiam Chong, Island Asset Management Pte Ltd and Chen Dawei, who will collectively end up with 5.59 per cent of the enlarged share capital of the group.

Mr Teo is an accredited investor who used to be a securities analyst; Island Asset Management is a registered fund management company here; while Mr Chen is the founder of Beijing Revolution Science and Technology Co Ltd and is the chairman of HanKore Capital Pte Ltd.

"The subscribers were independently introduced to the group through mutual business contacts of the directors and this subscription is purely for their financial investment purpose," Equation Summit said.

The group plans to use the net proceeds of S$3.8 million for the expansion of its subsidiary Disa Digital Safety Pte Ltd through acquisitions and joint ventures.

Separately, the group also announced that the High Court here has ordered judgment to be entered in favour of the group in its claims against Lena Karim, a director of Eika (Singapore) Pte Ltd.

The claims of Equation Summit arose from a breach by Ms Lena and her spouse of a sale and purchase agreement dated Oct 30, 2012 with Equation Summit. The duo are required to refund the difference between the purchase price of S$1 million and the adjusted purchase price (based on a formula stipulated in the agreement) if the value of the net tangible assets of Eika fell below S$2 million.

Under the award, Ms Lena has been ordered to pay Equation Summit the refund amount of S$969,381; interest on the refund amount of S$969,381 at 5.33 per cent per annum from the date of writ of May 14, 2014 until the date of payment; and costs of the claim and Lena's counterclaim on an indemnity basis.

Separately, the Court dismissed Ms Lena's claim against Equation Summit for oppression of the minority with an award of costs on a standard basis, the group said.