Biolidics Limited 8YY has entered into a new subscription agreement for the allotment of 98,500,000 new ordinary shares at a subscription price of 1.19 cents per share, amounting to an aggregate subscription of $1,172,150.
The announcement comes after the company failed to obtain shareholder approval for its previous subscription agreement at its extraordinary general meeting (EGM) on Nov 21.
The company had previously proposed the subscription of 230,769,231 new ordinary shares at an issue price of 0.65 cents per share to raise gross proceeds of $1,500,000 from Zhu Hua, managing director and 99.9% owner of Beijing Zhenghe Antai Investment Management.
The new subscription shares will be allotted and issued to Zhu, pursuant to the general mandate obtained from shareholders at Biolidics 8YY ’ annual general meeting (AGM) held on April 28.
As at April 28, the company had an issued and paid-up share capital, excluding treasury shares and subsidiary holdings, of 559,126,605 shares, putting the maximum number of shares that may be issued other than on a pro-rata basis at 279,563,302.
Biolidics had not issued any shares pursuant to the general mandate as at Nov 21.
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Since the proposed allotment and issuance of 98,500,000 subscription shares falls within the maximum number of 279,563,302 shares that may be issued, the prior approval of shareholders is not required for the issuance of the subscription shares under the new subscription agreement.
Shares in Biolidics closed unchanged at 1.3 cents on Nov 21.
