KUALA LUMPUR, Oct 12 — Jade Marvel Group Bhd (JMGB) intends to undertake a private placement of up to 20 per cent of the total number of issued shares of JMGB to third party investors to be identified later.

As at October 4, 2021, it said the latest issued share capital of JMGB was approximately RM135.19 million comprising 278.92 million shares, in which the 20 per cent of the shares comprises 55.78 million.

It said the issue price of the placement shares would be determined and fixed by the board at a later date after receipt of all relevant approvals for the proposed private placement, which is expected to raise proceeds of up to RM22.42 million.

“The proceeds are intended to be utilised by JMGB and its subsidiaries for new investment, business opportunity in the frozen food industry; future viable investments and opportunities; estimate expenses for the proposed private placement; and working capital of the group,” it said in a filing with Bursa Malaysia today.

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The company also said the exercise would enable JMGB to raise additional funds without incurring interest costs as compared to conventional bank borrowings, provides an expeditious fundraising alternative from the capital market and strengthen its shareholders’ funds and capital base.

On the outlook, it said JMGB group has initiated several new business strategies and plans which include the proposed joint venture and the business expansion into the money lending business.

“In view of the recovery in the food and beverage industry as well as the investment opportunities in the food processing sector and the recovery as well as the strength of money lending industry, the board has allocated RM6 million and RM6.34 million into the new investment opportunity in the frozen food processing industry being the proposed joint venture and working capital for money lending business respectively,” it said.

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It noted that the company has been optimistic about the financial contribution that may be accrued from the new business strategies and plans to JMGB group moving forward.

“In the event the proposed joint venture does not materialise, the board will channel the allocated proceeds to finance any future viable investments, either in the same business activities of JMGB group or in the different business activities,” it said.

In addition, the JMGB said up to RM10 million of the proceeds raised from the proposed private placement would be utilised to finance any suitable and viable potential businesses within 24 months from completion of the exercise.

At the market close today, JMGB’s share price was traded a sen lower at 59 sen with 1.75 million shares transacted. — Bernama