Landlord Capital World grants share options worth S$1.75m to marketing consultancy One World

PROPERTY developer Capital World has granted the option of subscribing for up to 50 million of its new shares to Hong Kong-based marketing consultancy One World Corporation.

If all share options are taken up at the proposed exercise price of S$0.035 per share, the transaction will amount to gross proceeds of S$1.75 million, which is 2.78 per cent of the enlarged share capital of Capital World.

The exercise price represents a 34 per cent discount to the volume-weighted average price of S$0.053 based on the trades done on Capital World shares on Dec 5, the date on which the term sheet was signed.

One World must exercise its share options within two years from the date the share options are granted.

Capital World will seek shareholder permission for this transaction at an extraordinary general meeting to be convened.

One World obtained share options for Capital World due to its role as referrer for a previous deal which saw Malaysia-listed manufacturing and property group PRG Holdings agreeing to take up to a 26.3 per cent stake in Capital World for up to S$16.5 million.

The deal also saw Capital World agreeing to pay a referral fee, which amounts to 5 per cent of total gross proceeds, to One World. The fee will be raised from a proposed subscription to One World.

One World's sole shareholder is Liu Xing Ping. It will use the potential gross proceeds of S$1.75 million for working capital purposes.