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Golden Energy announces placement to restore public float

COAL miner and trader Golden Energy and Resources said on Monday it has entered into a placement agreement to allot and issue up to 181 million new shares at S$0.67 each.

This represents a discount of about 9.68 per cent over the volume-weighted average price of S$0.7418 for each share, based on the trades done on the Singapore Exchange mainboard on April 22, 2015, before trading in its shares was suspended the next day.

The placement is needed to restore its public float, the company said.

If fully subscribed, the company plans to use the estimated gross proceeds of about S$121.3 million to repay loans to creditors and for general working capital purposes.

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Together with a S$1.3 million private placement to Deloitte & Touche Financial Advisory Services for professional fees (at the same price), this will increase the total number of the company's issued shares to 2.35 billion. The new shares in aggregate represent about 8.43 per cent of its issued shares.