MM2 Asia : 1B0 +3.23%&rsquo s chairman has paid S$6.1 million to participate in the media and entertainment company&rsquo s one-for-two rights issue at S$0.02 per rights share which shareholders approved at an extraordinary general meeting (EGM) on Friday (Dec 22).

 

In a bourse filing on Friday night, the company said Melvin Ang made the payment following his intention to fully subscribe for more than 307 million rights shares. He had indicated that he does not intend to apply for any excess rights shares. 

 

The renounceable rights issue &ndash priced at S$0.02 for each rights share on the basis of one rights share for every two existing ordinary shares &ndash was announced in September. 

 

The company had said it intends to use the rights issue to &ldquo position for future growth&rdquo , including deleveraging its financial position and funding growth opportunities in media and entertainment in Asia.

 

Two substantial shareholders &ndash tycoon Oei Hong Leong and &lsquo Popiah King&rsquo Sam Goi Seng Hui &ndash had given irrevocable undertakings in respect of the rights issue.

 

The company thus noted that it could raise some S$27.3 million under a &ldquo minimum subscription&rdquo scenario, and some S$34.9 million under a &ldquo maximum subscription&rdquo scenario.

 

At Friday&rsquo s EGM, 99.77 per cent of shareholders voted to approve the transfer of controlling interest to Oei and Goi, on top of approving the renounceable rights issue. Both men abstained from voting in respect of the resolutions relating to them.

 

MEDIA and entertainment company MM2 Asia : 1B0 0%has given notice that it has recorded three consecutive years of losses.

 

Based on audited full-year consolidated accounts, the mainboard-listed company recorded pre-tax losses for the last three consecutive financial years, it said in a bourse filing late on Friday (Nov 24).

 

However, it will not be placed on the Singapore Exchange (SGX) watch list as its six-month average daily market capitalisation was S$105.4 million as at Nov 15.

 

According to the rules of the SGX listing manual, mainboard-listed companies will be placed on the watch list if they record pre-tax losses for the latest three consecutive and complete financial years, and if they fail to maintain an average daily market cap of at least S$40 million over the last six months.

 

Watch-listed companies must take measures to satisfy these financial requirements within 36 months from the date they are placed on the list, otherwise they will be delisted from SGX or have their trading suspended with a view to delisting.

 

MM2 Asia released its unaudited first-half FY2024 results on Nov 14, 2023.

 

For the six months ended Sep 30, 2023, its net profit rose to S$10.8 million from a loss of S$6.2 million in the year-ago period and revenue rose to S$128.7 million from S$52.3 million.

 

The company attributed this to recovery of its businesses from the pandemic.

 

Its content business (film and dramas) revenue rose 36 per cent to S$15.5 million, while its digital entertainment business revenue rose 55.6 per cent to S$2.8 million.

 

Its concert and event business revenue &ldquo increased significantly&rdquo to S$66.4 million from S$6.3 million.

 

For its full financial year ended Mar 31, 2023, the company reported a net loss of S$122.5 million, following losses of S$42.1 million from FY 2022.

 

MM2 Asia said it will make an announcement should it be notified by the SGX that it will be placed on the watch list. SGX conducts reviews every quarter to identify companies to be watch-listed.