Vallianz enters into S$7m subscription agreement for issuance of 350m new shares

OFFSHORE marine solutions provider Vallianz Holdings said that investment holding company Greatwill Asset Global Limited has agreed to subscribe to 350 million of its newly-issued shares for S$7 million.

These shares, valued at S$0.02 per share, represent about 9.7 per cent of Vallianz's current issued share capital, said Vallianz in a release after market close on Monday.

After the allotment, they are expected to take up about 8.9 per cent of the enlarged share capital of 3.94 billion shares.

After deducting expenses, the net proceeds will come to about S$6.8 million.

Half of it will be used to strengthen Vallianz's alliances or joint ventures, while the other half will be used as working capital such as trade payables and general and administrative expenses, it said.

The listing of these new shares on the Catalist now awaits approval from the Singapore Exchange.

The subscription price represents a premium of about 11.1 per cent to the volume weighted average price of S$0.018 for trades done on the Catalist board of the Singapore Exchange for Jan 13, which is the preceding market day, and up to the time when the subscription agreement was signed.