It’s selling 550m shares at $0.043 each.
Vallianz has inked a subscription deal with two CRRC Corporation subsidiaries—CSR Zhuzhou Electric Locomotive Research Institute (Hong Kong) Co., Limited and CRRC (Hong Kong) Co. Limited—that is expected to bring in a total investment sum of $23.65m for Vallianz.
According to an announcement by Vallianz, the subsidiaries of the China state-owned rail corporation will subscribe for an aggregate of 550m new ordinary shares in Vallianz at $0.043 per share.
The new ordinary shares issued to CRRC will be subject to a one-year moratorium period from the transaction’s date of completion. Both of Vallianz’s major shareholders, Swiber Holdings and Rawabi Company Holding, are observing the same moratorium period on their existing shareholdings.
The deal makes CRRC a substantial Vallianz shareholder with an equity interest of about 13.9% in Vallianz’s enlarged share capital. Together, Swiber, Rawabi, and CRRC will have a combined shareholding of 53.6% in Vallianz. CRRC will also be entitled to a seat on Vallianz’s board of directors.
Vallianz stated that it plans to use the proceeds from the deal for general working capital needs.
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