JAKS to raise RM48.2 mil from share placement

KUALA LUMPUR: JAKS Resources plans to raise up to RM48.2 million from the proposed placement exercise of 48.22 million shares at an indicative RM1 per placement share with up to one detachable warrant each.

JAKS said on Nov 11 the proceeds from the placement would be used for working capital, business expansion, settlement of bank borrowings and/or other investments as well as to defray the expenses for the placement exercise.

"The company proposes to place out the placement shares together with the warrants attached thereto to third party investors to be identified. The proposed private placement may be implemented in one or more tranches," it said.

It said the placement exercise was the most appropriate means to meet the group’s funding requirements as the exercise could be completed faster to generate the required funds.