Centillion Environment & Recycling says it is undertaking a renounceable and non-underwritten rights issue of up to 1,858,585,040 new ordinary shares at an issue price of $0.005 for each rights share. Shareholders will be entitled to apply for 3 rights shares for every 10 held.

If the rights Issue is fully subscribed, Centillion expects to raise $9 million in net proceeds.

Centillion says the issue price of $0.005 for each rights share represents a discount of 75% to the last transacted price of $0.02 per share on the SGX today, before the release of the Company’s announcement of the rights issue.

The proceeds of the rights issue will be used to pay vendors Metech $2.6 million and GRX $2 million, as well as repay ECL $0.5 million in loans.

A further $1.7 million will also be paid to nTan Corporate Advisory in professional fees and expenses while $2.2 million will be used for working capital, Centillion added.