Dental group Quantum Healthcare plans to raise $1 million by placing out just over 285.7 million shares at 0.35 cents each.
PrimePartners Corporate Finance has been hired to place out these new shares, and will earn a fee of 3.5% along the way. The placement is not underwritten.
The placement price represents a 30% discount off the volume weighted average of 0.5 cent for trades done on Jan 27, the last trading day before the placement plans were announced.
“The board is of the view that the proposed placement will help to strengthen the financial position and capital base of the group and is in line with the company’s intention to improve its working capital position,” states the company on Jan 27.
The amount of shares to be placed out represents some 4.1% of the existing share base.
Thomas Tan Gim Chua, the company’s CEO cum single largest shareholder with nearly 1.7 billion shares, will remain the controlling shareholder as his stake is seen to dip from 24.64% to 23.66% upon full completion of the placement.
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Quantum Healthcare used to be called QT Vascular.