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ADDVALUE Technologies yesterday announced a $320,000 placement of eight million new ordinary shares with a new investor, to meet the company's funding needs. The new subscription agreement with Tan Sze Seng, dated July 26, issues him the eight million new shares at 4.03 cents each - a 9.9 per cent discount to Addvalue's volume-weighted average share price over last Thursday and the second half of last Friday.
After deducting for expenses, the net proceeds from this new subscription, estimated at $300,000, will be used for general working capital. This follows Addvalue's announcement earlier this month that its May 30 convertible loan agreement with Grande Pacific for cash funding of $3 million had been terminated.
Addvalue then entered into three subscription agreements with other interested investors.
The first on July 12 placed 30 million new shares for an aggregate consideration of $1.15 million with three investors. The second and third, on July 24, issued 18 million new shares for an aggregate consideration of $720,000 with two investors.
The completion of the latest agreement with Mr Tan is conditional on the exchange's approval for the listing and quotation of the new shares.
Upon allotment and issuance of all three July share placements, the issued and paid-up share capital of Addvalue will increase by 0.9 per cent, on an enlarged basis, the company said.
The group posted a net loss of $2.81 million for its full financial year ended March 31. This was due to write-offs and a sharp 46 per cent revenue plunge to $5.8 million from the previous year's $10.7 million.
Addvalue's shares closed at 4.5 cents each last Friday.
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