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PETALING JAYA: SMTrack Bhd has proposed to undertake a private placement to raise up to RM3.22 million.
In a filing with Bursa Malaysia, it said the fundraising exercise involves the issuance of up to 14.89 million shares, representing not more than 10% of its existing number of issued shares.
The placement shares will not be priced at more than 10% discount to the five-day volume weighted average market price (VWAP) of SMTrack shares immediately before the price fixing date.
Based on the indicative issue price of 21.6 sen per placement share, the proposed private placement will raise gross proceeds of up to RM3.22 million, of which RM2.52 million will be used as partial payment for the proposed acquisition of 60% in Citilink Aviation (M) Sdn Bhd.
Besides that, RM546,240 will be used as working capital while the remaining RM150,000 will be used to defray the estimated expenses relating to the exercise.
The placement shares will be placed out to investors who qualify under Schedules 6 or 7 of the Capital Markets and Services Act, 2007, which includes the issuance of placement shares to each investor for a consideration of at least RM250,000.
Alternatively, the issuance has to be made to high net worth individuals whose net personal assets exceed RM3 million or corporations with net assets exceeding RM10 million.
The proposed private placement is subject to the approval of Bursa Securities and is expected to be completed within six months from Bursa Securities’ approval.
