mm2 has been aggressively tapping investors for funds to shore up its balance sheet after the Covid-19 pandemic wreaked havoc on its business which spans movie and TV drama production, live concerts and cinemas. Besides placements and rights issues, it has raised cash via convertible bonds and warrants.
Barely two years after they first emerged as substantial shareholders of mm2 Asia (SGX:1B0
) , corporate bigwigs Oei Hong Leong and Sam Goi may well end up as the new controlling owners of the media and entertainment group, once its latest cash call is done and dusted.
The company announced on Sept 29 a one-for-two rights issue at 2 cents a share to raise between $27.3 million and $34.9 million to pare debt and fund working capital. As Oei and Goi are fully backing the exercise, their stakes will swell to 22.57% and 20.93% from 8.45% and 6.81%, respectively, if no one else subscribes for the new shares.
