SINGAPORE (Oct 24): Equation Summit has agreed to issue a total of 600 million new shares, or 10.5% of its enlarged share capital, at 0.7 cent each to four investors to raise $4.2 million.

Equation intends to use 100% of the net proceeds for the group&rsquo s partial or full repayment of loans subject to final negotiation with the lenders with any balance to be used as the group&rsquo s working capital.

The investors are Asdew Acquisition Asdew controlling shareholder Teo Khiam Chong Island Asset Management and Chen Dawei, an executive director of China Everbright Water. Asdew Acquisition will end up with 7.35% stake in Equation while the other three will hold a 1.05% stake each.

Equation Summit, and investment holding company, is marketing IT solutions ranging from anti-counterfeiting and anti-theft system to gadgets that track unsafe driving behaviour.

&ldquo With an improved working capital position, the Group would be better poised to capitalise on business expansion opportunities as and when they arise,&rdquo says Equation in its filing.

The subscribers were independently introduced to the company.

Shares of Equation Summit last traded at 0.7 cent.

 

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