KUALA LUMPUR (Jan 29): D'nonce Technology Bhd has decided not to proceed with its proposed private placement involving up to 20% of the company's issued shares after considering the current market condition.

In a statement to Bursa Malaysia today, the hard disk drive contract manufacturer said the private placement was intended to raise gross proceeds of up to about RM26.47 million to repay bank borrowings and finance property development expenses.

"Notwithstanding the above, given the current uncertain equity market condition, the company intends to explore alternative funding options to meet its funding requirements. For instance, the company may consider utilising its internally generated funds and/or alternative methods of fundraising to finance its property development expenses and repayment of bank borrowings.

"For the avoidance of doubt, based on the latest unaudited consolidated financial statements of DTB (D'nonce) and its subsidiaries as at Aug 31, 2018, the group's net cash generated from operating activities stood at approximately RM5.87 million. In addition, the group's cash and bank balances stood at approximately RM29.07 million whilst its bank borrowings stood at approximately RM73.66 million. Based on the group's net assets of approximately RM81.27 million, its gross gearing ratio is recorded at 0.91 time whilst its net gearing ratio stood at 0.55 time," D'nonce said.