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Totm Technologies seeks to raise $8.2 mil via proposed placement of 71 mil new shares

Felicia Tan
Felicia Tan • 2 min read
Totm Technologies seeks to raise $8.2 mil via proposed placement of 71 mil new shares
Pierre Prunier, CEO and executive director of Totm Technologies. Photo: Albert Chua/The Edge Singapore
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Totm Technologies is seeking to raise $8.17 million through a proposed placement of 71 million new shares at an issue price of 11.5 cents apiece.

In a filing on Oct 28, the Catalist-listed company announced that it had entered into a placement agreement with SAC Capital. Under the agreement, Totm Technologies had agreed to offer to procure subscriptions for the 71 million new shares.

The placement price represents a discount of 8.87% to the volume weighted average price (VWAP) to the company’s average share price of 12.62 cents for the total trades done on Oct 25. Oct 25 is the last full market day of trades made for Totm Technologies’ shares before it called for a trading halt.

The placement shares represent around 8.04% of the company’s existing issued and paid-up share capital. As at Oct 28, Totm Technologies has a total of 882.7 million shares in its capital. The placement shares will represent 7.44% of the enlarged base, which will total some 953.7 million shares.

According to the placement agreement, the proposed placement will take place no later than three business days once the conditions under the agreement after fulfilled. However, should any of the conditions remain unfulfilled around four weeks after the date of the agreement, or on a date agreed by Totm Technologies and SAC Capital, the placement may not go through.

In consideration of the agreement, Totm Technologies will pay SAC Capital a placement of 3.0% of the placement price per placement share for which the latter has procured subscribers for as at the completion date.

See also: Zixin Group plans rights-cum-warrants fund raising

According to Totm Technologies, the proposed placement will further strengthen its financial position and improve its cash flow to support its working capital requirements and new business opportunities.

The proposed placement is not underwritten and will be undertaken by way of an exempt offering in Singapore in accordance with Section 272B of the Securities and Futures Act (SFA).

Accordingly, no prospectus, offer document or offer information statement will be issued.

Shares in Totm Technologies last closed at 12.5 cents before its trading halt after the market closed on Oct 25.

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