Singapore Myanmar Investco to raise up to S$1.33 million through placement

SINGAPORE Myanmar Investco has entered into a subscription agreement with China-based Internet company The9 to raise up to S$1.33 million.

Under the agreement, The9 will subscribe for 11.08 million new shares in Singapore Myanmar Investco at an issue price of S$0.03 per share for S$332,500. This represents about 3.45 per cent of the company's existing equity share capital.

In addition, the company has granted The9 an option to subscribe for up to an additional 33.25 million new shares at an issue price of S$0.03 for each option share, for a sum of up to S$997,500.

The issue price represents a 39.5 per cent premium to the volume weighted average price of the shares traded on the Singapore Exchange on June 21.

The company said that the placement was in line with its efforts to search for new businesses and investment opportunities.

Half the proceeds will be used for business investments, while the other half will be used for general working capital requirements.

Shares in Singapore Myanmar Investco, which is on the SGX watch list, closed at S$0.02 on Monday, down S$0.001 or 4.76 per cent.