TEE International has announced a private placement of 129 million new ordinary shares in the company at 3 cents per share, amounting to a total of $3.9 million in proceeds.
The issue price represents a discount of approximately 3.7% from the weighted average price of the company’s shares of 3.12 cents as of May 14.
SEE:Tee International reverses from previous year's losses, reports $468,000 earnings in 1QFY21
Placement agreements were signed on May 14 with Tower Asia Fund 1 (TAF1) and Brickstone Investment Group, who will subscribe to 75% and 25% of the new shares respectively.
According to TEE International’s filing to SGX on May 17, TAF1 is a special purpose vehicle set up by Kuang Linyong, CEO of Beijing Urban Construction Road & Bridge Group Co. and Choa Fu Seng, while the majority shareholder of Brickstone is Calvin Thng.
Following the placement, TAF1 and Brickstone will hold 12.5% and 16.6% stakes in TEE International respectively.
The company intends to use the entire net proceeds from the placement, some $3.8 million, for working capital purposes.
Shares in TEE International close 0.1 cents or 3.13% lower at 3.1 cents on May 14.
