SMI Vantage, which has recently pivoted from running duty-free retail to crypto mining, plans to raise 100 million yen ($985,861.28) by issuing nearly 32.5 million new shares at 3.04 cents to an existing shareholder, Octo Force Capital Partners.
Upon completion of the placement, the shareholder, which is owned by one Akira Tanaka, will increase its stake from 1.15% to 6.74%.
Mark Francis Bedingham, the company’s president and CEO, will see his single largest stake of 32.53% dip to 30.69%.
Octo Force Capital, according to SMI Vantage, is in private equity, business investment and consulting.
SMI Vantage plans to allocate 80% of the new capital raised for business investments and the remaining for general working capital.
“The board is of the view that the proposed subscription is a good fund-raising opportunity that is beneficial to and in the interests of the company, and in line with the Board’s continuing expansion of its businesses, revenue operations and investment opportunities,” says SMI Vantage on Oct 9.
“The subscription proceeds will improve the financial position of the company, bolster the company’s working capital and fund the company’s operating expenses while the company explores growth opportunities and activities.
According to SMI Vantage, Tanaka is keen to increase his interest in the company and the placement is an indication of his confidence in the future plans, viability and anticipated performance of the company.
SMI Vantage shares closed Oct 7 at 3.1 cents, down 3.13% for the day and down 55.71% year to date.