Loyz Energy to issue 77m new shares to Arctos Investments for joint venture

LOYZ Energy will issue 76.6 million new shares at 1.305 Singapore cents apiece to Arctos Investments Pte Ltd in relation to a proposed joint venture with the latter in line with its plan to diversify into fund management, investment and trading.

Following that, Arctos Investments will own 5.02 per cent and 4.78 per cent in the Catalist-listed firm's existing and enlarged issue and paid-up share capital respectively.

The company's shares will be issued to Arctos Investments at no consideration as part of its contribution to the joint venture by way of its network, team of investment and trading professionals and risk management expertise. This also means that there will be no proceeds raised from the issue of the new shares, said the firm in an announcement over the weekend.

The issue price represents a discount of 10 per cent to the Loyz's volume weighted average price (VWAP) of 1.45 Singapore cents on Sept 28 - the full market day on which the shares were traded before the determination and agreement of the issue price between the parties.

Loyz Energy finished unchanged on Friday at 1.4 Singapore cents, and was the day's most active counter with 76 million shares worth S$1.14 million.