KUALA LUMPUR (Nov 3): ACE Market-listed mobile telecommunications products and services provider XOX Bhd plans to issue and allot up to 250 million shares to Macquarie Bank Ltd, to fund the planned expansion of its Voopee mobile application.

The funds raised from the share issuance will be used to finance the expansion of XOX's Voopee mobile application, which has significant potential for growth in both Malaysia and the surrounding region such as the Philippines, Thailand, and Indonesia, according to the XOX board.

Voopee, a mobile application currently only available in Malaysia, allows smartphone users to have an additional local mobile number without the need for an additional SIM card. Voopee also offers voice, text and rich media messaging services through cellular data and/or WiFi connections.

The 250 million XOX shares to be issued will represent about 42.03% of XOX's existing issued and paid-up share capital, or 29.59% of its enlarged issued and paid-up share capital after the proposed share issuance, XOX said in a statement today.

Assuming the full issuance of the subscription, the proposed issuance will change the shareholding structure of the company and dilute the collective shareholding interest of its existing shareholders, it said.

The investor may take up the subscription shares at any time on or before the subscription expiry date, said XOX.

"Macquarie Bank may sell any of the subscription shares before, on or after any subscription date throughout the course of the subscription period," it continued.

Macquarie, it added, will also not buy or subscribe for XOX shares to the extent that it holds over 10% of the company's issued share capital at any point in time during the subscription period that would require it to undertake a takeover offer for the remainder XOX shares it doesn't already hold. It also would not breach any foreign ownership limit imposed by Malaysian authorities.

"Macquarie has also expressed that it does not have any intention to seek the nomination of any person to the board or the removal or replacement of any person from the board or to participate in the management or decision making of the company," said XOX.