Eduspec proposes private placement again to raise up to RM18.42 million

PETALING JAYA: Eduspec Holdings Bhd proposes another round of private placement to raise up to RM18.42 million for its business activities after having raised RM20.67 million earlier.

Eduspec said in a Bursa filing that the exercise will see the placement of up to 131.55 million new shares, representing up to 10% of its total issued shares. The placement shares will be placed out to third party investors to be identified at a later date.

Proceeds raised will be used for working capital requirements as well as the migration of group’s current information technology learning and robotics classes and to localise the language curriculum for its Science, Technology, Engineering and Mathematics education using Robotics and Computer Science for Schools Programme.

Recall that Eduspec had on July 24 completed the previous placement with the issuance of 84.8 million shares raising RM20.67 million, a shortfall of about RM3.03 million and RM14.98 million under the minimum scenario and maximum scenario, respectively.

At its AGM held on February 27, the group had obtained a new mandate from its shareholders for the issuance of new shares not exceeding 10% of the total issued shares.

Eduspec said at this juncture, the proposed private placement exercise is the most appropriate avenue of fund raising without incurring additional interest expense, and minimising any potential cash outflow as compared with other financing methods such as bank borrowings.

“The proposed private placement will strengthen the group’s financial position and capital base and may potentially enhance the liquidity and marketability of Eduspec shares,” it added.

Eduspec’s shares remained unchanged at 13.5sen on Friday on some 827,100 shares done. Its market capitalisation stood at RM 125.93 million.

Source: The Sun Daily

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