Catalist-listed Metal Component has proposed to place 14.5 million shares in the capital of the company at an issue price of 5.526 cents per share.
The total subscription amount will come up to around $800,000.
The company had, on July 12, entered into the conditional placement agreement with the company’s existing shareholders, Ahillan Pupalasingam, Tan Hock Choon (Chen Fucun), Marc Robert Bonnici, Prasad K K Viswambharan and new shareholder Colin Maximilian Rozario.
Pupalasingam is the chief investment officer of the company. Tan is a business owner in the retail sector. Bonnici is the CEO of financial consultancy company Tullet Prebon. Viswambharan is the CEO of BGC Partners, while Rozario is the director of BGC Partners.
The shares will be issued within seven markets once the placement agreement is satisfied.
The issue price represents a 10% discount to the volume-weighted average price (VWAP) of 6.14 cents per share based on the trades done in the company on July 12.
The net proceeds of $770,000, after deducting the expenses incurred, will go towards funding the acquisition of Gainhealth and for general working requirements.
See: Metal Component Engineering diversifies into healthcare through acquisition of Gainhealth for $4 mil
As at 10.13am, shares in Metal Component are trading 0.1 cent lower or 1.6% down at 6 cents.
