KUALA LUMPUR (Sept 6): Eduspec Holdings Bhd has proposed to raise up to RM6.92 million via private placement to third party investors to be identified later.

The proceeds raised will be used for working capital and to repay bank borrowings. As of Aug 24, Eduspec's total bank borrowings stood at RM31.98 million.

In a filing with Bursa Malaysia today, Eduspec said the proposed private placement will involve the issuance of up to 138.45 million new shares, representing not more than 10% of its issued shares.

The placement shares will be priced at not more than 10% discount to the five-day volume weighted average market price (VWAMP) of Eduspec shares.

Assuming the placement shares are issued at an indicative issue price of 5 sen per placement share, a 7.58% discount to the 5-day VWAMP of Eduspec shares of 5.41 sen as at Aug 24, the proposed exercise is expected to raise gross proceeds of between RM5.01 million and RM6.92 million.

Kenanga Investment Bank has been appointed as the principal adviser for the proposed private placement.

"Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposed private placement is expected to be completed by December 2018," Eduspec said.

Shares of Eduspec closed unchanged at four sen today, bringing a market capitalisation of RM40.07 million. Over the past year, the stock has fallen 69.2% from 13 sen.