KUALA LUMPUR (Dec 19): TechnoDex Bhd has proposed to raise up to RM7.06 million via a private placement of up to 10% of its issued shares to fund commercialisation activities and for working capital.

These commercialisation activities include marketing expenses, brand building activities and awareness roadshows for its potential customers.

In a filing with Bursa Malaysia today, TechnoDex said the issue price of the placement shares will be determined and fixed by the board of directors at a later date.

"The placement shares will be placed to third party investor(s) to be identified at a later stage," it added.

For illustrative purposes, TechnoDex noted that based on the assumed issue price of 12.2 sen per placement share and issuance of up to 49.41 million placement shares and 57.83 million placement shares under the minimum and maximum scenario respectively, the proposed exercise will generate gross proceeds of up to RM6.1 million and RM7.1 million respectively.

As at Dec 15, 2017, the issued share capital of TechnoDex was RM57.48 million comprising 494.1 million shares. In addition, the company has 84.17 million outstanding warrants which were issued on Sept 23, 2013 and expiring on Sept 22, 2018.

Barring any unforeseen circumstances, the proposed private placement is expected to be completed by the first quarter of 2018.

TechnoDex’s share price gained 0.5 sen or 3.7% to close at 14 sen today, giving it a market capitalisation of RM69.17 million.