Emerging Towns & Cities Singapore has, on Jan 13, entered into share subscription agreements with HS Global Group and Nextcore Asset Management, where HS Global Group and Nextcore Asset Management have agreed to subscribe for up to 1.33 billion new shares into the company at 3 cents per share.
The agreements translate to a total consideration of $39.9 million.
The issue price of 3 cents per subscription share represents a premium of 25.0% to the volume weighted average price (VWAP) of 2.4 cents of the company’s ordinary shares for trades done on the Singapore Exchange Securities Trading (SGX-ST) on Dec 17, 2020.
Both agreements are independent of each other.
HS Global Group is an investment holding company incorporated in Hong Kong in March 2017. Its ultimate holding company is Dalian Hesheng Holdings Group, which has six businesses in chemical engineering and military technology, financial services, trading and fishery, real estate, Australian beef and overseas industries.
Nextcore Asset Management was established in Hong Kong in November 2018 and is fully held by Vendavel Capital. Nextcore Asset Management’s principal activity is to provide advice on securities and asset management services to investors.
Emerging Towns & Cities says it intends to use 100% of the net proceeds for the expansion of its business and for general working capital purposes.
As at 9.24am, shares in Emerging Towns & Cities are trading 1.8 cents higher or 75% up at 4.2 cents.
