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MMP Resources to raise S$1.3m for Japan expansion through share placement
MMP Resources is conducting a share placement to raise about S$1.3 million for its expansion into Japan.
The group on Tuesday entered into a share agreement with Singapore-based holding company, Vessel Gate Investment Pte Ltd, to issue 185.7 million new shares in MMP at 0.7 Singapore cent apiece.
The price represents a premium over its last trading price of 0.4 cent on Aug 30, derived based on the potential of the acquisitions MMP had announced in July, said the firm.
MMP last month announced plans to acquire Hokkaido ski operator JRT Trading for 80 million yen (S$1.05 million) in cash. It is also planning to partner global brand development firm Alliance Brands Limited in joint ventures in selected countries.
The proceeds will be used to further MMP's strategy in Japan, and also allow for additional possibilities the group is exploring through its tie-up with Alliance Brands, said its executive director Paul Andrew Crosio.
"A portion of the proceeds will also be used for incidental expenses associated with the fund raising and execution of these opportunities," he added.
The subscription shares will represent about 9.77 per cent of the enlarged share capital of MMP.