PETALING JAYA: Jaks Resources Bhd has proposed another round of fund raising exercise to raise maximum gross proceeds of RM54.97 million through a private placement as it did not able to raise sufficient funding for its power plant project.
Earlier the company had in December 2018 raised RM25.61 million from its rights issue of warrants.
However, as the warrants were undersubscribed by 62.48%, the proceeds raised were prioritised towards the repayment of bank borrowings, Vietnam power plant project, and to defray the relevant expenses relating to the exercise.
“The proposed private placement will enable Jaks to raise proceeds to bridge the gap for existing expenditure required for the Vietnam power plant project (such as the construction and engineering works for the jetty and administration building, and fabrication of additional equipment by contractors, as well as consultancy costs for project coordination management and advisory services) which were unable to be funded from the rights issue of warrants,“ it said in a filing with Bursa Malaysia.
Besides that, the proceeds will also be utilised for the repayment of bank borrowings and renewable energy projects.
The indicative issue price for the placement shares is assumed to be 80 sen and the placement shares will be placed out to third party investor(s) to be identified at a later date.
Jaks said there will be a corresponding dilution in the earnings per share of the group as a result of the increase in the number of shares issued.
The exercise is expected to be completed by the second quarter of 2019.
Source: The Sun Daily