NutryFarm International to issue 19m new shares to two private investors

MAINBOARD-LISTED technology provider NutryFarm International plans to raise net proceeds of S$720,000 from placement agreements with two investors on Monday.

NutryFarm has inked deals to place out 19 million shares at S$0.04 apiece, with the net proceeds to be used for working capital purposes, the board disclosed.

The issue price marks a premium of 8.1 per cent over the volume-weighted average price on the last market day before the planned placement agreements were signed.

The placement shares make up 19.7 per cent of the share capital of the company, and will comprise 16.5 per cent of the enlarged share capital after the placement exercise.

Businessman Cheng Meng, founder of durian trading firm OneFamily, will invest in 13.3 million shares in Nutryfarm, or 11.5 per cent of the enlarged share capital. Mining businessman Alex Loo is taking a stake of 5.7 million shares, or 4.9 per cent.

One "L. M. Niu", described as a business associate of the company, introduced the two investors, who have no ties to NutryFarm, its substantial shareholders or its board.

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NutryFarm shares last closed at 3.7 Singapore cents, before a trading halt was called.