CCM

CCM: lifts halt at 8.30am today. Proposes to place 44m new shares (25.7% of enlarged share base) to 9 individuals / entities (mostly high net worth investors) for a total consideration of $4.048m The placement price of $0.092/share, represents an 8% discount to the counter’s last close at $0.10. None of the placees will own more than 5% of enlarged share capital. To expedite the delivery of the placement shares, the co will borrow 16m shares from Mr Liew Sen Keong, a director and substantial sh/h of the co. A placement commission of 7% of total consideration is payable by the co to the Introducer, a Mr Foo Sek Kuan, an accountant. CCM intends to raise additional funds for general working capital purposes, which includes general and admin expenses, payments to suppliers and funds for the proposed upgrading of the group’s financial grading with the BCA for building devt from A2 to A1, which will allow the group to tender for larger govt projects. The group recently completed another placement of 35m new shares at $0.086 to Hengfai Business Devt (formerly Hengfai Strategic Investment), controlled by Mr Chan Heng Fai of SGX-listed SingHaiyi. Currently, Mr Chan is the second largest sh/h with 27.5% stake. Last night, CCM amended the terms of the previous subscription agreement to allow Hengfai Business devt to appoint 5 nominees to CCM’s board (from 2 originally). CCM has been loss making for the past two fiscal years. The counter trades at 1.5x P/B.