Asdion aborts private placement

PETALING JAYA: Asdion Bhd has aborted its private placement exercise to raise up to RM2.47 million.
Asdion had in November proposed the private placement of up to 10% of the company's issued shares.
Initially, Asdion said the proposed private placement will allow the group to raise the necessary funding to finance its working capital requirements, which was proposed to be utilised to pay its trade creditors and to fund the day-to-day operations of the group's on-going businesses, which includes operating and administrative expenses.
The board had said that the exercise is the most cost-effective source of capital to meet the group's working capital needs in the short-term and the most expeditious way of fund raising from the capital market as opposed to other forms of fund raising.
Asdion's share price gained 2.5 sen or 9.8% to close at 28 sen on some 20.21 million shares done.