Friday 29 Mar 2024
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KUALA LUMPUR (Feb 10): T7 Global Bhd has proposed to raise up to RM22 million in a private placement to fund its ongoing projects.

The placement involves the issuance of up to 55.17 million new shares, representing 10% of the group's total number of issued shares, to third party investors to be identified later, an exchange filing today showed.

In the filing, T7 Global said the issue price of the placement shares will be determined and fixed by the board at a later date.

But based on an indicative issue price of 40.1 sen per placement share, the exercise could raise up to RM22.01 million, which T7 Global said will be used to "partially finance the day-to-day operational expenses and general working capital expenses of the ongoing projects that the group is undertaking, which include, amongst others, the purchase of necessary materials, operating and administrative expenses, and staff-related expenses".

These include its three-year contract with Sabah Shell Bhd and Sarawak Shell Petroleum Company, the five-year contract with Vestigo Petroleum Sdn Bhd, as well as the provision of third party manpower services to MDC Oil & Gas Ltd, an entity of Mudabala Petroleum.

T7 Global said the private placement is expected to be completed by the first quarter of 2020.

Shares of T7 Global were trading unchanged at 45 sen apiece at 3.11pm, bringing it a market capitalisation of RM221.71 million. In the past 12 months, the stock has gained near 10%.

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