KUALA LUMPUR (Dec 7): Meda Inc Bhd is proposing a private placement of up to 10% of its total issued shares, together with a proposed share issuance of a similar quantum, to fund its Malaysia Tourism City project in Kuala Linggi, Alor Gajah, Melaka.

Both the private placement and the share issuance could each involve up to 49.26 million shares.

Assuming an indicative issue price of 38 sen a share for each placement and each subscription share, the company expects to raise gross proceeds of up to RM37.4 million from the proposed exercises.

Of that, up to RM30.85 million could be used for the development in Kuala Linggi, where it has 622 acres of land. The remainder is to be used for working capital and to defray expenses related to the proposed exercises.

The board expects the proposed exercises to be completed by the second quarter of 2019.

The counter slipped one sen or 2.56% to close at 38 sen a share today, giving it a market capitalisation of RM183.54 million.