No Signboard Holdings has proposed a placement of 77.78 million new shares at S$0.045 each to investor Henry Chandra Tjiang to raise S$3.5 million, with part of the proceeds earmarked for establishing a new restaurant chain.
The placement shares represent around 14.4 percent of the company’s enlarged share capital post-placement, the iconic chilli crab restauranteur said in a filing to SGX Thursday.
The pricing of the placement shares is at an around 13.9 percent premium to the volume weighted average price of S$0.0395 for trades on Thursday, No Signboard said.
“Since the onset of the pandemic, the group has been conscientiously managing its operating costs and has taken measured steps to review and implement cost cutting and control measures to conserve cash to meet its working capital requirements. However, the impact of
the pandemic on the group’s revenue and cashflow has continued to erode the group’s cash reserves,” No Signboard said in the statement.
“At the same time, the group continues to explore suitable opportunities to strengthen its competitive edge in its existing business and expand its F&B business both in Singapore and overseas,” the company said, adding the proceeds are both for expansion and to improve the financial position.
Around 60-70 percent of the proceeds will be used for establishing a new chain of restaurants, with the remainder for general working capital, the filing said.
Henry Chandra Tjiang is an Indonesian private investor with business interests in Indonesia-based food manufacturing, the filing said.