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Y Ventures to raise S$2m from proposed placement of 24.7m shares at S$0.0812 apiece

CATALIST-LISTED Y Ventures said on Monday that it is placing 24.7 million new shares in the company at S$0.0812 apiece to raise around S$2.0 million.

The placement price represents a discount of around 9.98 per cent from the volume-weighted average price of the group’s shares of S$0.0902 traded on Sept 17, the last full market day prior to the subscription date.

The new shares also represent around 10.74 per cent of Y Venture’s enlarged share capital. After the placement, the group’s issued and paid-up share capital will rise to 229.7 million shares from 205 million shares.

The placement’s net proceeds of S$1.98 million will be used to improve the group’s cash flow and increase its resources and working capital to pursue new business and acquisition opportunities. This was arrived at after deducting placement expenses of S$25,000.

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Around S$1 million or 50.6 per cent of the proceeds will be used for expansion via potential mergers and acquisitions, joint ventures, strategic collaborations and investments; while 49.4 per cent of the net proceeds will be used for general working capital requirements.

The share placement deals with nine investors were signed prior to the group’s trade halt on Sept 17. The subscribers were introduced by Eric Lew, Y Ventures executive chairman and director, as well as Evolve Capital Asia. No introducer fees were paid.

Whang Chin Keong, Mr Lew’s brother-in-law, will subscribe for eight million shares or 3.48 per cent of the group’s enlarged share capital for S$649,600.

Private investor Ganesh Kumar Bangah will subscribe for 3.1 million shares or 1.34 per cent of the enlarged share capital for S$250,096. He is the chairman of the PIKOM, the National Tech Association of Malaysia; the founder and executive chairman of Commerce.Asia, and founder of online payments company MOL Global.

Roy Wong Chi Wai, a private investor introduced to the group during a business networking event, will subscribe for 3.7 million shares or 1.61 per cent of the enlarged share capital for S$300,440.

NJE Capital will be subscribing for 2.9 million new shares or 1.26 per cent of the group’s enlarged share capital for S$235,480. It is the investment vehicle of private investor Esther Low Suet Cheng, introduced to the company by Mr Lew.

Tan Bien Kiat and Lim Tien Sze will each subscribe for 1.24 million shares or 0.54 per cent of the enlarged share capital for S$100,688.

Tan Chuu Si, Asdew Acquisitions and Joel Lou Sang Jun will each subscribe for 1.5 million shares or 0.65 per cent of the enlarged share capital for S$121,800.

Mr Lew, meanwhile, will also acquire a 10 per cent stake from Y Ventures managing director Adam Low for S$1.7 million. He acquired the stake through his wholly owned company Amber Blaze Limited and will become a substantial shareholder with a deemed interest in the shares owned by Amber.

Mr Lew said: "We are optimistic on the prospects for Y Ventures going forward. Hence, it was natural for me to acquire a stake in the company to align my interest with shareholders and also demonstrate my belief in the future growth of Y Ventures."

He added that the new proceeds will be used to "further augment" business growth.

The company has requested to lift the trading halt it called for on Sept 18.