SMRT to raise up to RM7.02 million via private placement

PETALING JAYA: SMRT Holdings Bhd has proposed to undertake a private placement exercise to raise up to RM7.02 million.
The group said in a stock exchange filing that based on an illustrative issue price of 17.5 sen per placement share and the issuance of up to 40.11 million placement shares, the proposed private placement is expected to raise gross proceeds of up to RM7.02 million.
A bulk of the proceeds ranging between RM4.81 million and RM5.42 million will be allotted for general working capital purposes, while RM1.5 million has been earmarked for potential acquisition of businesses.
The exercise is expected to be completed by the second quarter of this year.
SMRT opined that the corporate exercise is the most expeditious and cost-effective manner of raising funds and is also expected to strengthen its financial position with the enlarged capital base
The stock fell 5.56% to close at 17sen with some 614,400 shares done.