Incredible Holdings has entered a private placement deal to raise up to S$38.7 million from the subscription sale of 14.09 million new shares and 21.14 million warrants, the company said in filings to SGX Friday and Saturday.
Under the deal, Incredible will issue the new shares at S$0.0011 each to Mission Well, Zhou Qilin and Zheng Zeli, as well as issuing the free non-tradable warrants at an exercise price of S$0.0011 each, the filing said. If all of the warrants are exercised, the placement will raise around S$38.7 million, the filing said.
Zhou is a substantial shareholder of the company and she is an independent third party, based in China, the filing said. Zheng is a private investor based in Hong Kong, and she is an independent third party, the filing said.
Mission Well, Incredible’s largest and major shareholder, will subscribe for around 90 percent of the placement, contributing around S$13.9 million, the filing said. Once the placement is completed, and excluding any exercise of warrants, Mission Well’s stake in Incredible would rise to around 83.86 percent from 57.11 percent, the filing said.
The subscription and exercise price is a premium of 10 percent over the weighted average price of S$0.001 for trades on 29 April, Incredible said.
Incredible said the net proceeds from the share placement, estimated at S$15.5 million, will be used to pay promissory notes to significantly reduce its liabilities and funding cost. If the warrants are fully exercised, the net proceeds, estimated at around S$23.2 million, would be used to fund merger and acquisition opportunities and to fund expansion on a 50:50 basis, the filing said.
“The group is laying the building blocks of growth to develop the group into a leading e-Marketplace for luxury watch enthusiasts around the world. The group’s mergers and acquisitions (M&A) strategy revolves around earnings accretive acquisitions that will complement this core strategy,” Incredible said.
The placement is expected to be completed within three months, Incredible said.