Jubilee Industries Holdings is raising some $1.5 million in gross proceeds by placing out 30 million shares to seven individual investors.
The placement shares are priced at five cents each. Jubilee last traded at 4.9 cents on July 19.
In addition to the shares, Jubilee will also issue 30 million warrants for each of the placement shares subscribed. The warrants are to be exercised at the same price of five cents each.
After deducting expenses, Jubilee expects net proceeds of around $1.46 million.
If the warrants are fully exercised, the company will raise another $1.48 million, bringing the total raised to up to $2.94 million.
The investor taking up the most shares, or 14 million, is Ng Chuen Guan.
According to Jubilee, the funds from the placement will be used to strengthen its general working capital base for its two business segments, namely the mechanical business unit and the electronics business unit.
“Whilst the current working capital position of the group is sufficient for present purposes, the increase in the general working capital base will allow the group to capitalise on growth opportunities in its existing businesses in order to undertake projects and/or transactions, which could in turn, increase the group’s revenue,” the company notes.
According to Jubilee, the placees were introduced by one Lye Won Fui, an unrelated third party individual, who will take a 3% cut in the form of 900,000 shares also at five cents each.
For the year ended March 31, Jubilee reported a net loss of $1.77 million, an improvement from losses of $3.8 million incurred in the year earlier period. Revenue in the same period increased by 8.4% to $145 million.
