mm2 Asia plans placement of 87.7m new shares at S$0.57 apiece

SINGAPORE-LISTED entertainment company mm2 Asia on Thursday announced a proposed placement of 87.7 million new shares at S$0.57 apiece.

If taken up in full, the placement will allow the company to raise net cash proceeds (after deducting estimated expenses of about S$1 million) of about S$49 million. Of this, 70 per cent will be used to finance acquisitions, and the remaining 30 per cent will be used as general working capital.

The placement shares represent about 8.4 per cent of the existing share capital, and about 7.7 per cent of the enlarged share capital of the company.

The placement price represents a discount of about 6.6 per cent to the volume weighted average price of S$0.6102 for each share, based on trades done on Singapore Exchange on Wednesday.

mm2 Asia added that it is in discussions with potential strategic investors to subscribe for the shares at the placement price.