Mary Chia to issue $1m in discounted shares including to founder to strengthen finances
The funds will be used for working capital, including manpower costs, as well as overseas expansion.
Mary Chia Holdings has proposed issuing 100 million new shares at a discounted price of one cent each, to four investors including the founder, in order to bolster the company's financial position and fund overseas expansion. This move, announced on October 6 after the market closed, would inject $1 million into the group, but would significantly dilute the shareholdings of existing investors.
The subscription price represents a 27% discount compared to the volume-weighted average price over the past 30 days, and is also below the prices over the previous one and three months. The company aims to strengthen its capital base and liquidity, giving it greater financial flexibility to meet its operating and business development needs.
The estimated net proceeds from the share issue are expected to be around $946,570, with $750,000 dedicated to working capital and the remaining $196,570 for expanding operations in China and Thailand. The proposed subscription will increase Mary Chia's issued share capital from approximately 333.84 million shares to 433.84 million shares, with the founder holding about 7.86% of the enlarged company after the transaction.
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