G3 Global makes cash call again, plans to raise up to RM18.3m via 30% private placement

TheEdge Tue, Jan 17, 2023 10:02pm - 1 year View Original


KUALA LUMPUR (Jan 17): Less than seven months after G3 Global Bhd completed its 20% private placement that raised RM18.18 million, the group has proposed another cash call to raise up to RM18.29 million.

G3 plans to place out up to 870.83 million new shares or 30% of its share capital in the latest private placement, the loss-making group said in a bourse filing.

The group also announced that it wants to amend its utilisation plan for gross proceeds raised from the previous private placement, the bulk of which was originally earmarked for the group's diversification into the healthcare business, including the distribution of Covid-19 test kits.

The group said it has spent RM3.79 million of the RM18.18 million raised last year on the project that involves providing Airport Integrated Security and Safety System at the KL International Airport (KLIA).

G3 intends to spend the balance gross proceeds, amountig to RM13.87 million, on the KLIA security and safety system job, mainly for “payment to subcontractors for the supply of fabric switches, software licensing, universal power supply and high-resolution closed-circuit television”.

“After taking into consideration the urgency and cash flow requirements of KLIA security and safety system project, the group intends to re-allocate the balance proceed previously earmarked for the group’s healthcare business.

“The reallocation of the balance proceeds will allow the group to cater to the immediate funding requirements for the KLIA security and safety system project which is expected to contribute positively to the group’s future earnings,” it said.

On top of that, G3 intends to allocate RM14.5 million from the latest RM18.29 million private placement to fund the KLIA security and safety system project.  

Of the remaining amount, RM2.99 million will be used for working capital and RM800,000 for expenses of the fundraising exercise.

G3 also said that the actual gross proceeds raised from last year’s private placement was RM18.18 million, which was RM29.43 million or 61.82% lower than the indicative gross proceeds of RM47.61 million, due to the difference in the actual issue prices of the placement shares.

Shares of G3, which fell by 62.5% last year, closed half sen or 17% lower at 2.5 sen on Tuesday (Jan 17), valuing the group at RM72.57 million.

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