KUALA LUMPUR (March 6): Acoustech Bhd plans to raise up to RM80 million via the issuance of redeemable convertible preference shares (RCPS) mainly to fund its property development projects.

The proposed issuance involves up to 800 million new 2% RCPS to Sycamore Capital SPC, which is acting on behalf of Sycamore Equity Fund SP, at an issue price of 10 sen each. The parties had inked a suscription agreement for the RCPS on March 5.

“The RCPS will be issued in 32 equal sub-tranches of RM500,000 each over five tranches of a principal amount of RM16 million for each tranche,” Acoustech said in a filing with the local bourse today.

While the RCPS conversion price is dependent on the prevailing market prices of Acoustech's shares when the RCPS subscriber intends to convert the RCPS, the minimum conversion price has been set at 22 sen.

The proposed exercise will enable the group to raise funds expeditiously. “In view of the prevailing market conditions it has been challenging for the group to obtain the optimal project financing requirements for its projects expeditiously,” the company added.

Of the RM80 million, RM48 million will be used to finance Acoustech's existing property development projects, while RM24 million will be set aside for future property development projects. The remainder will be used for working capital and to defray expenses relating to the proposals which include an amendment to the company's constitution to facilitate the RCPS issuance as well as a bonus issue.

The bonus issue, it said, will involve up to 97.21 million free warrants on the basis of one warrant for every two existing shares held in Acoustech on a date to be fixed.

Acoustech shares closed 1.5 sen or 4.48% lower at 32 sen today, valuing the company at RM62.22 million. Over the past year, the counter has fallen some 30% from 45.5 sen.