MC Payment, which was formerly known as Artivision Technologies, is seeking to raise $6.4 million through the proposed placement of up to 16 million new ordinary shares in the capital of the company.

The issue price of each placement share will be at 40 cents.

The placement agreement was entered into with OCBC Securities on March 8.

The approval of the proposed placement was obtained from the company’s shareholders at MC Payments’ extraordinary general meeting (EGM) on Jan 22.

The placement price represents a discount of some 12% to the volume weighted average price (VWAP) of 45.43 cents per share for trades done on March 4.

Get the latest Singapore corporate news stories for FREE

Assuming all the placement shares are placed out, the company’s issued share capital will increase to 278.25 million shares from 262.25 million shares.

SEE:MC Payment to become first digital payments service firm listed on SGX

The proposed placement will not result in a transfer of controlling interest.

The company will receive some $5.5 million in net proceeds after deducting the estimated fees amounting to $0.9 million.

Of the $5.5 million, $1.8 million will go towards redeeming the outstanding Series D Convertible Bonds maturing in June.

Another $1.4 million will pay outstanding expenses in relation with the proposed transactions, and a final $2.3 million will be used towards the group’s working capital needs, including $1.8 million for manpower costs and $0.5 million for operating and administrative expenses.

As at 1.06pm, shares in MC Payment are trading 3 cents higher or 6.6% up at 48.5 cents.