mm2 Asia has raised $54 million to refinance existing debt, as the company gears up for the recovery from the pandemic.
The company is issuing an exchangeable bond for a two-year term, carrying an interest of 5% a year.
The bonds will be exchangeable for shares in mm Connect, the entity holding the cinema businesses of mm2 Asia in Singapore and Malaysia.
Under terms of the deal arranged by UOB Kay Hian, the bond comes with 250 million detachable warrants too. Each warrant carries the right for a period of 5 years from issue to subscribe for one new ordinary share at the exercise price 6.5 cents per new share.
Executive chairman Melvin Ang says the company has a “clear strategy to right-size the business”, innovate its offerings and deliver value to stakeholders and customers.
“The deal has come at an opportune time for us to build back stronger during this recovery phase; cinemas can now operate at full capacity since April 22 2022 and blockbuster movies are filling seats close to pre-pandemic levels,” he says.
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“We are on track for a full recovery, becoming more robust and resilient than before,” adds Ang.
Mm2 Asia closed June 16 at 5.8 cents, down 3.33% for the day.
