Sunpower Group is seeking to raise $935,456 through the proposed placement of up to 2.5 million new shares in the capital of the company, at an issue price of 36.8 cents apiece.

Sunpower Group, on March 29, entered into placement letters with seven of its key employees (or known as the placees).

Under the terms of the letters, the employees – Lyu Wei, Xiong Hanqing, Li Qingshuang, Wang Hui, Feng Keke, Yang Yuanyuan and Zhou Hongyan – will receive a total of 2,542,000 shares at a total consideration of $935,456.

Lyu Wei will be allotted 600,000 shares, or 0.076% of the group’s enlarged share capital with a consideration of $220,800.

Xiong and Li and each hold 491,000 shares representing 0.062% of the group’s enlarged share capital with a consideration of $180,688 each.

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Wang, Feng, Yang and Zhou will each hold 240,000 shares or 0.03% amounting to $88,320 each.

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The proposed placement is part of Sunpower Group’s remuneration framework in recognition of the placees’ contributions and importance to the group.

The placement price represents a discount of 54% to the volume weighted average price (VWAP) of 80.02 cents for trades done on March 29. The placement price is based on the average original purchase price paid by Sunpower for the buy-back of the placement shares of 36.8 cents each.

As at March 29, the group has an issued capital of 791.8 million ordinary shares. It will have an enlarged issued and paid-up capital of 794.3 million shares.

The placement shares will represent 0.32% of the enlarged share capital of the group.

The completion of the proposed placement is subject to a few conditions including the approval in-principle of the SGX-ST and the approval of the company’s shareholders.

The estimated net proceeds from the placement will amount to some $860,000, which will be used for Sunpower’s general working capital purposes.

Shares in Sunpower closed 2.5 cents higher or 3.2% up at 80 cents on March 29.