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Jubilee strikes new placement agreement to raise S$1 million with private investor

ELECTRONICS components distributor Jubilee Industries Holdings has agreed to place S$1 million in shares to a private investor, replacing a previous agreement for a S$5 million share placement to the same investor.

The Catalist-listed firm said late on Friday night that on April 19, it agreed with the investor Pek Hak Bin to terminate the previous agreement announced in June last year. That agreement involved Jubilee placing 150.1 million shares at 3.33 Singapore cents, for S$5 million in gross proceeds.

Separately, it said that Mr Pek, a former country president of BP Singapore, has agreed to subscribe to 30.03 million new shares for S$1 million. The shares represent 3.13 per cent of the enlarged share capital of the firm.

The price of 3.33 Singapore cents per subscription share represents a 4.86 per cent discount to the weighted average price for trades done on April 19.

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Mr Pek is currently chief executive officer for Cronus Resources Group, which invests in energy, resources and technologies sectors in Asia.

He had expressed interest to invest in Jubilee, said the firm, which added that he has no prior business relationship with the company and does not hold any Jubilee shares.

The proposed placement will increase resources available to the company to improve its cash flow, including improving its product mix towards high-margin products and services, sourcing for new product lines and exploring new business opportunities, Jubilee added.

All the net proceeds from the placement, estimated to be S$960,000, will be used for general capital working purposes.

When alloted and issued in full, the subscription shares will increase the company's issued share capital to 958.19 million shares.