Blumont in share placement deal with private individual

Blumont Group has agreed to place out 100 million new ordinary shares to a “private individual investor”, at S$0.01705 apiece in a deal that will net the firm an estimated S$1.67 million after expenses.

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Blumont in share placement deal with private individual

Joyce Hooi
21 January 2015

Blumont Group has agreed to place out 100 million new ordinary shares to a “private individual investor”, at S$0.01705 apiece in a deal that will net the firm an estimated S$1.67 million after expenses.

The investor, Vigneswaran T Subramaniam, has not had any business dealings with Blumont apart from this share placement, and does not hold any shares in it, Blumont said on Tuesday.

He was introduced to the company by a director, Farhash Wafa Salvador. “No remuneration or commission was paid or will be payable by the company to him in connection with the placement,” Blumont said in a filing to the Singapore Exchange. The group also said that the placement will “strengthen (Blumont’s) balance sheet, and will provide the company with funds for general working capital.”

The placement price of S$0.01705 represents a discount of about 9.8 per cent to the volume weighted average price of S$0.0189 per share for trades done on Tuesday - the last market day before the deal was signed. On completion of the deal, the placement shares will represent about 3.7 per cent of Blumont’s enlarged issued and paid-up share capital.

The placement is conditional on approval-in-principle being granted by the Singapore Exchange for the listing and quotation of the placement shares within three months from the date of the agreement, among other things.

Blumont’s counter rose 0.1 cent - or 5.3 per cent - in trading on Tuesday to two Singapore cents before the placement announcement was made.

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