LifeBrandz to raise S$5.7m from rights issue

LIFEBRANDZ is proposing a renounceable non-underwritten rights issue that is projected to raise estimated net proceeds of about S$5.68 million.

The proposed rights issue will see the issuance of over 388 million new ordinary shares in the company at 1.5 Singapore cents per rights share.

The company said after Monday's trading hours that the new shares will be allotted on the basis of two rights shares for every one existing ordinary share in its issued share capital.

The proposed rights issue is subject to, among others, the approval of shareholders at an extraordinary general meeting and in-principle approval from the company's sponsor, RHT Capital.

The issue price of 1.5 Singapore cents represents about 55.9 per cent discount to the counter's closing market price of 3.4 Singapore cents on Dec 18.

The company proposes to provisionally allot rights shares to all shareholders eligible to participate in the rights issue. They would comprise entitled depositors and entitled scrip-holders and exclude foreign shareholders.

The company explained that the proposed rights issue will enlarge its capital base and enhance its financial flexibility. It expects to tap on the proceeds for both growing its existing food and beverage business and developing new businesses - fintech, information technology and travel.