PETALING JAYA: Microlink Solutions Bhd is expected raised RM8.45 million via a private placement exercise of up to 10% of its total issued share.
According to the group’s filing with Bursa Malaysia, the sum is derived from an indicative price of 50.5 sen per share on the issuance of 16.74 million new shares.
Microlink said of the proceeds raised, RM5.07 million will be utilised towards the repayment of bank borrowings and RM3.1 million for the repayment of trade payables.
The group’s existing bank borrowings stood at RM15.70 million as of September 30, 2019 and the proposed payment of RM5.07 million is expected to translate into an annual interest rate savings of RM410,00 based on the average interest rate of 8.05% per annum.
Microlink said the proposed private placement is the most cost-effective source of capital and the most expeditious way of fund raising to meet the group’s funding needs in the short term.
The exercise is expected to be completed by the second quarter of 2020.
