SINGAPORE (Apr 9): Anchor Resources, the Malaysian goldmine operator, is selling 143.8 million new shares at 1.53 cents each to 18 investors in a private placement to raise $2.15 million.
The issue price represents a discount of 10% to Anchor’s volume weighted average price of 1.7 cents for trades done on April 3, the full market day before its trading halt on April 4.
Of the placement net proceeds of $2.15 million, $762,500 will be used to repay the full amount due on May 3 under an repayment and subscription agreement entered into on Dec 11 2018 between the company and first tranche investors Lim Chiau Woei, Tan Beng Kiat and Koh Kai Jok.
The remainder of $1.39 million will be used to redeem the company's second tranche bonds due April 3.
Anchor said it had originally intended for the bonds repayment to be funded by the company’s 1% unsecured redeemable equity-linked notes due 2022 (RELN), in in principal amount of $10 million in three tranches, which was agreed to be subscribed by Advance Opportunities Fund (AOF) and Advance Opportunities Fund I in March 12.
However, due to the urgency of fund raising required to meet the payment of guaranteed bonds due on May 3, Anchor decided to withdraw the RELN Tranche 1 ALA and intends to subject the issue of shares under the RELN issue to specific shareholders' approval in the future, should the need arise.
The 18 investors were introduced by investor Tan Ong Huat, Anchor said in a Singapore Exchange (SGX) filing onTuesday morning.
When the placement is completed, Tan will be paid around $154,000, satisfied with 10.1 million new shares at 1.53 cents each.
The subscription shares will represent 11.56% of the company’s enlarged share capital, while Tan’s shares will represent 0.81% of the company’s enlarged share capital.
