KUALA LUMPUR: T7 Global Bhd has proposed to undertake a private placement of up to 20% of its total issued shares to third party investor(s) to be identified later.
In a filing with Bursa Malaysia today, T7 said the issue price of the placement shares will also be determined and fixed later once it has acquired the relevant approvals for the proposed private placement.
It said the placement shares will be issued at a price of not more than 10% discount to the five-day volume weighted average market price of T7 shares, immediately preceding the price-fixing date.
T7 said the exercise is expected to raise gross proceeds of up to RM42.12 million, based on the indicative issue price of RM0.36 per placement share.
It added that the proceeds will be utilised to partially finance its on-going projects, including the construction of a Mobile Offshore Production Unit in view of the contract secured by its wholly owned unit, Tanjung Offshore Services Sdn Bhd.
“The funds will also be used as working capital expenses for the oil and gas contracts.
“Our board opines that the proposed private placement is the most appropriate avenue of fund raising against conventional bank borrowings, as the exercise enables our company to raise additional funds without incurring interest costs,“ it added. – Bernama