GCCP Resources Limited Announces Strategic Share Placement for Growth and Expansion
15 January 2025 – GCCP Resources Limited, a company incorporated in the Cayman Islands and listed on the Catalist Board of the Singapore Exchange Securities Trading Limited (SGX-ST), has announced a strategic move that could potentially affect its share price. The Company has entered into a placement agreement to issue 176,402,976 new ordinary shares at S\$0.005 per share, raising approximately S\$882,014. This private placement represents approximately 13% of its current issued share capital and is expected to dilute existing shareholders’ holdings to around 11.5% upon completion.
Key Details of the Proposed Placement
- Issue Price: The placement price of S\$0.005 per share represents no discount or premium to the volume-weighted average price of the Company’s shares traded on 10 January 2025.
- Investor: The sole placee for this transaction is Cheong Wei Kuan, a private investor invited by the Company’s Founder, Mr. Alex Loo. No fees or commissions are payable to Mr. Loo for this introduction.
- Listing Application: The Company, through its sponsor Evolve Capital Advisory Private Limited, will seek approval from SGX-ST for the listing and quotation of the new shares.
- Completion Conditions: The placement is subject to receiving approval from SGX-ST and other regulatory requirements. If conditions are unmet by 30 days from the agreement date, the deal will lapse.
Use of Proceeds
The funds raised, net of fees and expenses (estimated to be S\$827,014), will be allocated equally as follows:
- 50% (S\$413,507): For capital expenditures to support overseas expansion in the Middle East and Australia.
- 50% (S\$413,507): For general working capital purposes, including meeting operational expenses and strengthening financial flexibility.
The Company reported a net loss of S\$2,075,301 and operating cash outflows of S\$2,123,000 as of 30 September 2024, making this placement critical for its financial stability and growth.
Financial Impact on Shareholders
- Share Capital: Post-placement, the Company’s share capital will increase from S\$49.91 million (1,356,945,976 shares) to S\$50.79 million (1,533,348,952 shares).
- Net Asset Value (NAV): NAV per share will decrease from RM4.69 to RM4.34 due to the dilution effect.
- Earnings Per Share (EPS): EPS will decline from RM0.34 to RM0.30.
Important Notes for Shareholders
Shareholders should note the following:
- The Placee, Cheong Wei Kuan, is not a director, substantial shareholder, or connected party to the Company. The placement will not result in any controlling interest transfer.
- No moratorium will be imposed on the new shares, and they will rank pari passu with existing shares.
- The placement is being executed under the general share issue mandate approved at the 2024 AGM, with ample headroom remaining for future issuances.
The Company emphasizes that this placement is essential to capitalize on growth opportunities and stabilize its financial position amidst recent losses.
Cautionary Statement
While the placement is expected to strengthen the Company’s financial position, it remains subject to regulatory approval and other conditions. Shareholders and potential investors are advised to exercise caution when trading GCCP shares. The Company will release further updates as developments unfold.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Readers are encouraged to consult their financial advisors before making any investment decisions.
