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International Cement raises S$3.6m through conditional share placement to individual investor
INTERNATIONAL Cement Group (ICG), formerly Compact Metal Industries, has raised S$3.6 million through the placement of 80 million shares at S$0.045 apiece to an individual investor, Wu Xinghui, after the Singapore Exchange (SGX) gave conditional in-principle approval for the deal on Wednesday.
The issue price represents a 36.36 per cent premium on ICG's last traded share price of S$0.033 on Tuesday.
A further S$5.4 million will be raised if Ms Wu exercises a call option for an additonal 120 million shares. The call option will expire on Nov 8, 2019, six months from the agreement date.
Assuming she takes up all shares available in the agreement, the cement producer will raise a total of S$8.9 million in net proceeds, after deducting S$60,000 in expenses.
Proceeds will be used for general working capital requirements of the group.
The in-principle approval is subject to further disclosure of Ms Wu's background. She was the human resource general manager of Chinese company Sichuan Yonhua Technology Group (SYT).
ICT said she was introduced to the group through its executive chairman Ma Zhaoyang's business associates.
SGX also requested further information on SYT and its founder Wu Youhua, and a written confirmation from Mr Wu that he does not have any personal or business connection with ICT and its CEO, directors, substantial shareholders and their associates.
In addition, ICG, which is on SGX's watch list, will need to disclose a detailed breakdown on the use of the proceeds.
The call option granted to Ms Wu is subject to shareholder approval and the conditions mentioned above.
The confirmed placement shares are expected to be allotted and issued by May 29 and listed on the mainboard by May 30.