Rhone Ma proposes private placement to fund milk processing plant project

TheEdge Tue, Feb 08, 2022 07:30pm - 1 year View Original

KUALA LUMPUR (Feb 8): Rhone Ma Holdings Bhd plans to undertake a private placement of 10% of its issued shares to raise between RM13.45 million and RM18.84 million to fund the setting up of a milk processing plant and for working capital purposes.

Rhone Ma hopes to use RM7.5 million of the proceeds to build the plant with a capacity of 14.4 million litres per year in Kapar, Selangor by the third quarter of 2025.

This is to cater to the rising demand for dairy products in Malaysia which consumes more than it produces, the group said in a bourse filing.

Rhone Ma will use another RM2.5 million of the proceeds for marketing expenses, while the balance will go towards working capital.  

The animal feed producer plans to issue between 20.08 million and 28.12 million placement shares at an indicative price of 67 sen per share.

The group has warrants expiring on Feb 4, 2026 with a conversion price of 70 sen per share. The warrants last traded at 21 sen.

Shares of Rhone Ma meanwhile closed half a sen or 0.68% lower at 72 sen on Tuesday (Feb 8), giving the group a market capitalisation of RM144.63 million.

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