KUALA LUMPUR (Aug 5): Green Ocean Corp Bhd said today the issue price of 18.5 sen a share for the initial tranche of the palm oil refiner's planned private placement had lapsed after the payment condition was not met.

In a statement today to Bursa Malaysia, Green Ocean, which is also in the renewable energy business, said that on July 28, 2020, the company's board fixed the issue price of the initial tranch at 18.5 sen a share.

"Pursuant to Rule 6.14 of the Listing Requirements, payment for the placement shares must be received within five market days from the price-fixing date (i.e. by Aug 5, 2020, a payment condition).

"The issue price of the placement shares shall be re-determined and re-fixed by the board at a later date after all relevant regulatory approvals have been obtained for the proposed private placement.

"The issue price of the placement shares will take into consideration prevailing market conditions and the provision of Rule 6.05(a) of the Listing Requirements where the issue price shall not be at a discount of more than 10% from the 5DVWAMP (five-day volume-weighted average market price) of Green Ocean shares immediately preceding the price-fixing date," Green Ocean said.

On July 28, Green Ocean said in a Bursa filing that the company had proposed to undertake the private placement, which involves up to 28.97 million new shares, representing not more than 10% of the issued shares in the company.

"Based on the initial issue price, the proposed private placement will raise gross proceeds of up to approximately RM5.36 million. For the subsequent tranches, the issue price of the placement shares will be priced at not more than a 10% discount to the 5DVWAMP of Green Ocean shares immediately before the price-fixing date," Green Ocean said then.

Today, Green Ocean's share price had shed two sen or 6.25% to 30 sen at 4.06pm, with a market capitalisation of RM88.36 million. The stock saw some 27 million shares traded.