PETALING JAYA: D’Nonce Technology Bhd has decided not to proceed with the proposed private placement exercise after taking into consideration the current market condition.
In November last year, D’Nonce announced its intention to raise gross proceeds of up to RM26.47 million from the proposed private placement of up to 20% of the total number of issued shares, for property development expenses and repayment of bank borrowings.
“Given the current uncertain equity market condition, the company intends to explore alternative funding options to meet its funding requirements. For instance, the company may consider utilising its internally generated funds and/ or alternative methods of fundraising to finance its property development expenses and repayment of bank borrowings,“ D’Nonce said in a stock exchange filing.
Based on the latest unaudited consolidated financial statements of D’Nonce and its subsidiaries as at Aug 31, 2018, the group’s net cash generated from operating activities stood at RM5.87 million. In addition, the group’s cash and bank balances stood at RM29.07 million whilst its bank borrowings stood at RM73.66 million.
Based on the group’s net assets of RM81.27 million, its gross gearing ratio is recorded at 0.91 times whilst its net gearing ratio stood at 0.55 times.
“In view of the foregoing, the company may consider to fund its property development expenses and repayment of bank borrowings in the interim via internally generated funds and/ or alternative methods of fundraising.”
At 2.35pm, D’Nonce’s share price was trading 1.5 sen or 2.9% lower at 49.5 sen on 427,600 shares done.
