Sunmoon places out S$15m of shares to Chinese online group Shanghai Yiguo
SUNMOON Food Company, a fresh food distributor, has agreed to place out S$15 million of new shares and another S$9 million of warrants to Chinese online shopping group Shanghai Yiguo E-Commerce.
The proceeds will be used to boost the group's working capital, it said in an exchange filing late on Monday night.
As part of the agreement, it will issue 333.3 million new shares at 4.5 Singapore cents - representing a 55 per cent discount to its average share price of 10 cents on Dec 30. With these will come 166.7 million free unlisted warrants that each carry the right to subscribe for a new ordinary Sunmoon share for 5.4 cents each, for a period of three years.
When allotted and issued in full, the placement shares and warrant shares will represent about 61 per cent of Sunmoon's enlarged share capital.
The firm said that the S$23 million in net proceeds will provide it with sufficient working capital to ensure business continuity, as it sells investments related to its discontinued dehydrated produce business and shifts towards an asset-light consumer-centric business model.
Sunmoon will be seeking shareholders' approval at an extraordinary general meeting.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Google to pay up to US$6 million to News Corp for new AI content, The Information reports
Restaurant Brands tops estimates as Burger King overhaul pays off
Yen falls after suspected intervention on Monday; eyes on Fed
US: Wall St opens lower on labour costs data
TikTok shop tops 500,000 US sellers after 2023 e-commerce launch
Parkway Life Reit Q1 DPU up 4% to S$0.0379