LHN Group has entered into a placement agreement on June 10 to place up to 6.5 million shares at an issue price of 33.51 cents per share.

According to LHN, which is dual-listed in Hong Kong and Singapore, the placement shares will be allotted and issued in Singapore under its general mandate, meaning it is not subject to shareholder approval.

<i><strong>See also: <a href="https://www.theedgesingapore.com/news/property/lhn-group-acquires-geylang-property-135-mil"  target="_blank">LHN Group acquires Geylang property for $13.5 mil</a></strong></i>

The issue price represents a discount of approximately 10% to the weighted average price of trades done on SGX-ST of 37.231 cents per share for the full market day on June 10.

It also represents a premium of approximately 6.2% to the closing price of HK$1.85 (31.57 cents) as quoted on the Hong Kong Stock Exchange on June 10, and a premium of approximately 12.6% to the average closing price of HK$1.744 per share for the last five consecutive trading days immediately prior to the date of the placement agreement.

Post-placement, the new shares will represent approximately 1.59% of LHN’s enlarged share capital.

Assuming that all of the shares are fully placed, LHN will raise sales proceeds and net sales proceeds of $2.2 million and $2.1 million respectively. The net proceeds will be used for general working capital purposes, such as renovation costs of the group’s properties and operating expenses for the group.

Soochow CSSD Capital Markets (Asia) has been appointed the placement agent.

Shares in LHN closed 1 cent or 2.6% lower at 37 cents on June 10.

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