mm2 Asia proposes $25m capital raise via placement and rights issue

It aims to strengthen capital base and improves working capital.

mm2 Asia Ltd. has signed a term sheet with MMRA Pte. Ltd., a subsidiary of Hildrics Asia Growth Fund VCC, for a $25m capital raise.

Under the term sheet, MMRA Pte. Ltd. will subscribe for new ordinary shares in mm2 Asia for a total consideration of $15m through a placement agreement.

The company also plans a rights issue to raise up to $10m, which will be fully underwritten by the investor under an underwriting agreement.

mm2 Asia said that the proposed transactions are subject to conditions precedent, including approvals from creditors, judicial and regulatory authorities, the grant of a whitewash waiver by the Securities Industry Council, and, if required, shareholder approval.

The transactions are part of the group’s restructuring, aimed at strengthening its capital base and improving working capital. The board said the moves are in the best interests of the company and its shareholders.