H2G Green (formerly P5 Capital) is proposing to place 47.4 million new ordinary shares in the capital of its company via subscription agreements with two investors, Chua Weijie and Teo Tat Beng. The shares will be issued at 2.11 cents apiece, amounting to a total consideration of $1 million.
Chua and Teo are both said to be private investors and were introduced to the group by the company’s CEO and executive director, Lim Shao-Lin. Teo’s wife, Sim Siew Tin, already holds 17.25 million shares in H2G Green.
Following the completion of the subscription agreement, Chua and Teo will hold a respective stake of 1.65% and 2.03% in the company’s total enlarged number of shares.
H2G Green had already entered into another subscription agreement with Hongkong China Treasury Limited on Dec 14 where it proposed to allot and issue 142.18 million new shares to the latter at 2.11 cents apiece, or a total of $3 million.
The shares will be issued under the general share issuance mandate obtained at H2G Green’s annual general meeting (AGM) on July 28. The maximum number of shares that may be issued under the mandate is 549.6 million shares.
According to H2G Green, the placement price represents a discount of approximately 9.83% to the volume weighted average price (VWAP) of 2.34 cents for trades done on Dec 9.
See also: H2G Green to divest 49.9% share in subsidiary for $20 mil; raise $3 mil from share placement
H2G Green’s sponsor, RHT Capital, will submit an application to the SGX-ST on behalf of the company for the listing and quotation for the placement shares on the Catalist board.
The proposed placement is said to help strengthen the financial position of H2G Green’s 51%-owned subsidiary, Gashubunited Utility Private Limited. It will also help improve Gashubunited Utility Private Limited’s cash flow to “meet anticipated general working capital requirements”.
H2G Green adds that it intends to place the net proceeds with banks and, or financial institutions, or use them for other purposes on a short-term basis.
Shares in H2G Green last closed at 2.4 cents before its trading halt on the morning of Dec 12.
