China Gaoxian Fibre Fabric Holdings and controlling shareholder China Success Group (International Holdings) said it has entered into an agreement with Fleur Capital (S) for a proposed $27 million investment into the company.
Fleur Capital had previously indicated an interest to invest in the company on terms that were substantially similar to those set out in the earlier non-binding term sheet that the company signed with Dymon Asia Special Opportunities Fund as announced on 4 May 2012.
Following the signing of the agreement, China Gaoxian intends to submit a resumption of trading proposal to the Singapore Exchange.
Fleur Capital will subscribe to 270 million new shares in the company at $0.10 per share, for a total subscription price of $27 million.
China Gaoxian will also issue 1.155 billion warrants representing one free warrant to all shareholders and the investor, for every two existing shares in the company at an exercise price of $0.10 per share with an exercise period of five years from date of issue; and the creditors agreeing to waive all claims.
After the subscription and the acquisition are completed, Fleur Capital will hold 780 million shares, representing approximately 33.8% of the total number of issues shares in the enlarged capital of the company.
China Gaoxian said Fleur Capital will be a valuable partner in the development of the company’s upstream expansion project (Huaxiang Project) and assist the company in its resumption of trading of its shares on SGX. The additional capital raised through the Subscription will also be used to finance the expansion of the group’s businesses, including the Huaxiang Project.
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