mm2 Asia raises nearly S$54.7m from rights issue

ENTERTAINMENT group mm2 Asia raised nearly S$54.7 million after the close of its rights issue on Thursday.

Announced on Feb 3, the issue was priced at 4.7 Singapore cents per rights share, which represents a discount of around 60.8 per cent to the closing price of 12 Singapore cents per share on Feb 1, being the last trading day prior to the announcement. At its close, valid acceptances and excess applications for around 113 per cent of the available shares were received.

In a press statement on Tuesday, the mainboard-listed company said that the majority of net proceeds from the rights issue will be primarily used to reduce existing liabilities.

"With the successful completion of the rights issue, we have strengthened our balance sheet which will make us even more resilient and well-positioned to ride through the current Covid-19 crisis. We will continue to strive hard to deliver value to them," said Melvin Ang, executive chairman of mm2 Asia.

Mr Ang, who had around 38.1 per cent share capital in the group before the rights issue, also contributed to 27.2 per cent of the total issue, representing an additional investment amount of about S$14.9 million.

The renounceable rights issue was fully underwritten by UOB Kay Hian.

As at 9.19am on Wednesday, shares of mm2 Asia were trading 0.3 Singapore cent or 4.9 per cent lower at 5.8 cents.