KUALA LUMPUR (April 10): London Biscuits Bhd is set to raise RM3.45 million via the issuance of the first tranche of its private placement.
In a stock exchange filing today, the cake and biscuit maker said its board had fixed the issue price for the tranche totalling 10 million shares at 34.5 sen per share.
The price represents an approximate 9.78% discount to its average 5-day volume weighted average market price of London Biscuits shares up to yesterday, it said.
London Biscuits is proceeding with the placement exercise, despite its auditors expressing on Feb 22, a qualified opinion on the group’s financial statements for the year ended Sept 30, 2018 (FY18).
The auditors, who were appointed on Dec 20, 2018, said they were unable to satisfy themselves by alternative means concerning the group’s physical inventories held at Sept 30, 2018.
The private placement, which received shareholders’ approval on April 1, seeks to raise up to RM22.73 million to further pare down the group’s bank borrowings.
This is London Biscuits’ second placement in less than a year. The first, announced on May 21, 2018, was aimed at raising up to RM9.82 million to pare down bank borrowings.
The group is controlled by non-executive chairman Datuk Seri LIew Kuek Hin via a 21.74% stake held by Meileelanusa Sdn Bhd and his family members, including his son Datuk Seri Liew Yew Chung, who is also the group chief executive officer.
Shares of London Biscuits closed up 0.5 sen or 1.32% at 38 sen today, leaving the group with a market value of RM98.75 million.