VCPlus will be raising just gross proceeds of $600,000 from a placement instead of $6.66 million after two of the three investors pull out.
According to VCPlus, Hyper SN and QNX Partners have not remitted their respective portion of funds by the long stop date of Jan 30.
They were supposed to invest $2.61 million and $2.34 million respectively, and end up as shareholders holding 12.41% and 11.12% respectively in VCPlus, reads the company’s Dec 6 announcement.
A third investor, one Tang Zhengming, is going ahead with her investment by subscribing for 200 million new shares at 0.3 cents each.
However, instead of investing $1.71 million for a 8.13% stake as originally intended, Tang will now invest just $600,000 for a stake of 4.17%.
Nonetheless, she might further increase her investment by up to $1.11 million down the road, as VCPlus has given her a call option to subscribe for another 370 million new shares at 0.3 cents each.
See also: UMS raises $51.6 mil after placement was 2.55 times covered
If Tang fully exercises her option, she will end up with 7.71% of the company.
According to VCPlus, Tang, a Singaporean, “is an accomplished businesswoman” in the F&B industry.
She holds a stake of 1.32% in an entity called Veivo Web Technology, with one Gao Hong owning the remaining 98.68% via an entity called Delta Investment Holding Group.
See also: UMS seeks to raise up to $52 million via placement by CGS-CIMB
Last October, VCPlus announced a “strategic collaboration framework” with Delta to explore the incorporation of a joint venture company as the exclusive distributor of the services of Veivo Web in Asia Pacific region outside China.
According to VCPlus, the funds from Tang will be used for working capital.
It will also tap on her “expertise and business network” to “explore commercial opportunities to support and strengthen” its future businesses.
