You are here

Metech International proposes placement cum warrants issue to raise S$6.88 million

Metech International has proposed a private placement cum warrants issue of up to 22.5 million new shares at an issue price of S$0.153 each, as well as 22.5 million warrants at an exercise price of S$0.0153 each, to raise about S$6.88 million altogether, assuming all the warrants are exercised.

The free, detachable, transferrable and non-listed warrants will be issued on the basis of one warrant for each placement share, with each warrant carrying the right to subscribe for one new share in the company.

The placement price and the warrant exercise price represent a discount of approximately 9.13 per cent to the volume weighted average price of S$0.1675 per share based on trades done on Aug 27, 2019.

Gross proceeds from the issue of the placement shares will be approximately S$3.44 million, with another S$3.44 million from the issue of the warrant shares, assuming all the warrants are exercised.

Assuming that all the placement shares are issued and all the warrants are exercised, the company’s issued and paid-up share capital will increase from about 90 million as at the date of this announcement to about 135 million shares. They will represent approximately 33.32 per cent of the enlarged share capital following the completion of the proposed placement cum warrants issue.

Your feedback is important to us

Tell us what you think. Email us at

According to Metech International, the rationale is to strengthen the financial position and cash position of the group and to be less reliant on external sources of funding.

Proceeds will go to the repayment of the bond issue through FundedHere which falls due in January 2020, general working capital, and to fund general corporate activities.

The company has also requested for the lifting of its trading halt.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to