SINGAPORE (Sept 23): Y Ventures Group is seeking to raise $2.0 million in a proposed placement of 24.7 million new shares at 8.12 cents each.
In a fling on Monday, the Catalist-listed e-Commerce retailer announced it had entered into subscription agreements with nine investors for the allotment and issue of the new shares.
The placement price represents a discount of 9.98% to the volume weighted average price of 9.02 cents for trades done on the shares of the company on Sept 17 – the full market day immediately preceding the date of signing of the subscription agreements.
The group says some $1 million of the net proceeds of the proposed placement will be used for expansion of its business through potential mergers and acquisitions, joint ventures, strategic collaborations and investments.
The remaining $976,892 will be used to fund the general working capital requirements of the group.
The placement shares represent approximately 10.74% of the group’s enlarged issued share capital, including the new shares.
Meanwhile, Y Ventures also announced that executive chairman Eric Lew will acquire 20.5 million shares in the company from managing director Adam Low Yik Sen.
Lew is acquiring the shares, which represents 10.0% of Y Ventures’ existing shares before the proposed placement, through his wholly-owned company, Amber Blaze.
As such, Lew and Amber Blaze will become substantial shareholders of the company following the completion of the proposed sale, with Lew having deemed interest in all the shares of the company held by Amber Blaze.
“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,” Lew says.
“Using the new proceeds to further augment our business growth and with our e-commerce expertise and proprietary online data analytics capabilities, we are confident in paving the way to become a vital player in the digital ecosphere in the future,” he adds.
As at 11.097am, shares in Y Ventures are trading 0.3 cent lower, or down 3.3%, at 8.7 cents.
