Vividthree proposes S$1.9m placement

VIVIDTHREE Holdings on Wednesday said it is looking to undertake a placement of up to 15.9 million new ordinary shares at a price of at least 12.6 Singapore cents apiece.

Net proceeds - after deducting S$0.12 million in estimated expenses - will be around S$1.9 million, assuming all the placement shares are successfully issued and allotted at 12.6 cents each.

The Catalist-listed virtual reality, visual effects and computer-generated imagery production studio said the proposed placement is meant to strengthen its financial and working capital position.

The company, which was spun off from media producer mm2 Asia in 2018, said it may also use the proceeds to acquire intellectual property (IP) rights and business assets.

The placement agent Soochow CSSD Capital Markets (Asia) has agreed to, on a best efforts basis, procure subscribers for the placement shares at 12.6 cents each.

That placement price represents a premium of 27.3 per cent to the volume-weighted average price of 9.9 cents for each share based on trades done on the Singapore bourse for the full market day on which the placement agreement was signed.

The price was arrived at following arm's length discussions between Vividthree and the placement agent.

The new shares will comprise about 4.54 per cent of the enlarged share capital, if the proposed placement is successful.

It is conditional upon, among other things, approval from the Singapore Exchange for the listing of and quotation for the placement shares on Catalist, as well as the entry into the pricing supplement by April 30.

Separately, Vividthree had announced on Tuesday that it is buying the IP rights to a horror-themed comic series for S$1.5 million.

Its shares closed at 9.9 Singapore cents on Wednesday, down 0.2 cent or 2 per cent, before it announced the proposed placement.