Vertice to raise up to RM19.4m via private placement

KUALA LUMPUR (July 2): Vertice Bhd has proposed to place out new shares — up to 10% of its enlarged issued share capital — to independent third party investor(s) to be identified later, to raise as much as RM19.37 million, mainly to fund its construction project expenditure.

From that, as much as RM17.38 million will be used for its construction project expenditure, while RM1.5 million will be used for working capital and the remaining of RM487,000 will be for estimated expenses for the proposed exercise, the group said in a stock exchange filing yesterday.

The placement could involve the issuance of up to 25.49 million placement shares, at an issue price to be fixed. The proceeds mentioned above is based on an indicative price of 76 sen per placement share.

Vertice said the placement shares will not be priced at more than 10% discount to the five-day volume weighted average market price (5D-VWAP) of its shares immediately before the price fixing date.

Vertice added that the proposed exercise is not expected to have any immediate material effect on the group’s earnings for the financial year ending March 31, 2020 (FY20), as proceeds to be raised from it are expected to be used within 12 months from the listing of the placement shares.

The board expects the proposed exercise to be completed within six months from the date of approval from Bursa Securities, Vertice added.

Vertice shares closed 3.5 sen or 4% higher at 91 sen yesterday, bringing its market capitalisation of RM171.77 million.