Will YuuZoo's new funding deal wreck its share price?
IT may come across as a simple deal, but YuuZoo Corp's recently announced S$30 million funding facility from US-based fund GEM Global is by no means heartening for investors saddled by the anaemic showing of its stock since its debut on the Singapore Exchange a year ago.
It also signals limited borrowing options for YuuZoo, debt free as it is, which would need capital to acquire assets to grow its social e-commerce networks or business of "virtual shopping malls".
The deal allows YuuZoo, as an when and if it needs cash over the next three years, to tap the funds provided under the facility by issuing new shares to GEM Global at a 10 per cent discount to prevailing market price on …
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