Solid Automotive proposes private placement to repay debt, working capital

by **Cals** Thu 09 Apr 2015, 23:05

Solid Automotive proposes private placement to repay debt, working capital

By Shalini Kumar / theedgemarkets.com | April 9, 2015 : 1:45 PM MYT

KUALA LUMPUR (Apr 9): [size=14]Solid Automotive Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) has proposed to undertake a private placement of up to 10% of its issued share capital to repay bank borrowings and for working capital.

The proposed private placement will be issued at any point of time, to third party investor(s) to be identified at an issue price to be determined later.

"For illustrative purposes, based on the issued and paid-up share capital of Solid Automotive as at April 3, 2015 of RM75 million comprising 150 million shares, a total of 15 million shares may be issued," said the group in a Bursa Malaysia filing this afternoon.

Solid Automotive said based on the indicative issue price of RM1.41 per placement share, the proposed private placement is expected to raise gross proceeds of up to RM21.15 million.

The proposed private placement is expected to be completed by the third quarter of this year.

Solid Automotive shares were two sen lower at RM1.60 at the noon bell, with 161,200 shares done.

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