Singapore– mm2 Asia Ltd raised approximately $5.0 million in net proceeds from a new share placement to Hesheng Media Co., Ltd., Apex Capital Group Pte Ltd and Maxi-Harvest Group Pte Ltd. mm2 Asia entered into three separate share placement agreements for an estimated 6,351,625 shares to be issued and allotted to the three at a proposed issue price of $0.7872 per placement share.
Under the agreement, Hesheng Media will receive 1,270,325 new shares representing approximately 0.58%, Apex Capital will receive 2,540,650 new shares representing approximately 1.16%, and Maxi-Harvest will receive 2,540,650 new shares representing approximately 1.16% of mm2 Asia’s enlarged and issued and paid-up share capital of approximately 219.7 million shares.
The placement will enlarge Hesheng Media’s holding of mm2 Asia’s shares from 1,920,000 shares to 3,190,325 shares. Hesheng Media is mm2 Asia’s Pre-IPO shareholder and the increase of its stake in the company will allow for closer working ties between the two. Both Maxi-Harvest and Apex Capital are private investment entities. The placement to Hesheng Media and Maxi-Harvest are pursuant to the share issue mandate given by mm2 Asia’s shareholders at its Annual General Meeting on 22 July 2015, and the placement to Apex Capital will be subject to shareholders’ approval as Mr Yeo Khee Seng, Benny who holds 70% of the voting rights of Apex Capital, has also a total direct and indirect interest of 6.06% of the voting rights of mm2 Asia and is thus a substantial shareholder of the company.
The net proceeds of the proposed placement will be used entirely for general working capital purposes. With enhanced financial resources, mm2 Asia can improve its cashflow and pursue acquisition opportunities as and when they arise. The company recently completed the acquisition of Cathay Cineplexes Sdn Bhd’s business operations at two locations in Malaysia and announced a proposed acquisition of Mega Cinemas Management Sdn Bhd’s three Mega Cineplex cinemas in northern Malaysia. The aforementioned acquisitions are part of mm2 Asia’s plan to diversify and expand into the downstream value chain of film production.
