It has PMB on board for its first tranche of shares placement which it had proposed to undertake a private placement of up to 10% of its issued and paid up capital of 125.81 million new ordinary shares.
PMB has agreed to subscribe 52.8 million placement shares or 5% of its share capital at rm0.80 per placement share.
For subsequent tranches, the placement shares would not be priced lower than rm0.25 which is the par value of the shares.
Based on the indicative issue price of rm0.80, the proposed exercise is expected to raise up to rm100.65 million of which rm96.9 million will be used for working capital.
Assuming a full exercise of 202.18 million outstanding warrants and proposed private placement, THHEAVY’s proforma share capital, is expected to rm345.98 million from rm255.2 million. Its net asset per share will jump to rm0.43 while gearing falls to rm0.50 times.
Additionally, stakes of LTH and GuoLine Capital Ltd will be reduced to 28.81% and 4.69%.
The EPS of the group should be correspondingly diluted from the increase in shares pursuant to the proposed private placement.