Media production company mm2 Asia will be raising $19.5 million from two prominent businessmen, Sam Goi Seng Hui and Oei Hong Leong.
The company is placing 390 million new shares at 5 cents each, with Goi and Oei each taking up half the shares.
Upon completion of the placement, they will each hold 7.18% of the company.
The placement will help improve the company's net tangible asset value per share from a negative 3.39 cents per share, as at March 31 2021, to a pro forma basis of negative 2.18 cents per share.
Melvin Ang, mm2 Asia's executive chairman (picture), says the media and entertainment industry has had a tough ride in the last two years due to the pandemic.
“However, we are beginning to see positive traction for our businesses as more markets emerge from the pandemic. We are also seeing strong demand for regional content, global cinema box office recovery, as well as expected pent-up demand for concerts and events as Covid restrictions eases,” he adds.
See also: VCPlus to raise just $600,000 from placement instead of $6.66 million after investors' u-turn
Ang says the placement will put the company in a stronger financial position to take advantage of the post-Covid recovery growth plan. Goi and Oei will also help open up new opportunities for the company, tapping on their business networks and resources in the region.
Mm2 Asia shares closed Feb 23 at 5.5 cents, down 3.51% for the day and down 8.33% year to date.
Photo: Albert Chua / The Edge Singapore
