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BUSINESS

Niche Capital proposes private placement to raise RM37.66 mln

07/11/2022 08:18 PM

KUALA LUMPUR, Oct 7 (Bernama) -- Niche Capital Emas Holdings Bhd (NICE) has proposed to undertake a private placement of up to 30 per cent of the total number of its issued ordinary shares to raise gross proceeds of up to RM37.66 million mainly to further fund its mining business.

In a filing with Bursa Malaysia, it said the private placement will entail the issuance of 369.23 million shares, and the gross proceeds are expected to be utilised by the group for the mining business in Sokor North Area in Kelantan (RM23 million), property related-business (RM5.0 million), working capital (RM8.56 million), as well as expenses for the private placement proposal (RM1.0 million). 

For illustrative purposes, the indicative issue price is based on an approximate 19.69 per cent discount to the five-day volume weighted average market price of NICE shares up to and including the latest practicable date of 12.7 sen per share.

"The private placement will enable the group to raise additional funds for the purpose, which is expected to contribute positively to its earnings potential in the future," it said.

On April 14, 2021, NICE announced that the company is diversifying its existing core business to include the exploration of minerals, mining and mining-related businesses.

Moving forward, with the proceeds to be raised from the private placement, NICE will be able to carry on exploration works in the Sokor North Area, and if successful, will enable it to secure a recurring revenue stream from extraction, processing and sales of gold minerals within the Sokor North Area for the long term.

“Notwithstanding the above, the group will remain cautious in growing its businesses in view of the current uncertainties in the overall global and local economies and will take into consideration, amongst others, the financial requirements,” it added.

-- BERNAMA

 

 


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