KUCHING: Borneo Oil Bhd (Borneo) has proposed another private placement that is expected to raise up to RM31.24 million to meet the group’s working capital requirements.
The proposed fund raising exercise entails the issuance of up to about 1.94 billion new ordinary shares or 20 per cent of the company’s total number of issued shares.
The indicative issue price of the placement shares is RM0.0161 each. The placement shares will be placed out to third-party investor(s) to be identified later.
If RM31.24 million could be raised, Borneo plans to allocate about RM31.09 million for its working capital to be utilised within 31 months from the completion of the private placement.
The company intends to allocate RM15 million (48.25 per cent) for the Resources and Sustainable Energy (RSE) segment to source trading materials, such as gypsum, laterite and bauxite in the production of clinker and cement.
Makin Teguh Sdn Bhd (MTSB) is an existing 29.27%-owned associate company of Borneo and the group has been managing the construction of MTSB’s integrated clinker and cement manufacturing plant in Sabah since 2017.
The plant, which was completed in August 2022, is currently undergoing production trials and is expected to be fully operational by June 2023.
“Moving forward, the group will be the raw material supplier for MTSB’s cement business,” Borneo said in a filing with Bursa Malaysia.
Borneo plans to set aside about RM8.85 million (28.46%) for general expenses — rental, upkeep of building premises, machineries and motor vehicles, utilities cost and other staff-related expenses. Another RM3.22 million (10.35%) will be allocated for Food and Franchise Operations (FFO) for sourcing of raw ingredients, such as poultry and wheat for in-house F&B products, RM2.41 million (7.76%) for Property Investment and Management segment to pay for contractor fees for the construction of the clinker and cement plant and RM1.61 million for operator fees for the transportation of limestone to the relevant ports in Sabah.
In the past 12 months, Borneo said it had raised RM22.4 million from another private placement that was completed on Dec 13, 2022.
Nearly all the proceeds or RM21.7 million have been utilised. The money was used for the payment of trade and other payables of Borneo group (RM8.96 million), purchase of raw ingredients for the FFO segment (RM4.48 million), RM3.36 million for payment to contractors for the construction of the clinker and cement plant, RM4.39 million for other expenses (e.g. staff-related expenses, rental of office and franchise premises, utilities, office upkeep and maintenance).
Meanwhile, Serba Dinamik Holdings Bhd (SDHB) said Bursa Malaysia Securities Bhd has granted the company an extension of time for a further six months up to July 5, 2023 to submit its regularisation plan to the regulatory authorities.
The earlier deadline expired on Jan 6, 2023.
The extension of time is without prejudice to Bursa Securities’ right to proceed to suspend the trading of the listed securities of SDHB and to de-list the company in the event:
(i) the company fails to submit a regularisation plan to the regulatory authorities on or before July 5, 2023;
(ii) the company fails to obtain the approval from any of the regulatory authorities necessary for the implementation of its regularisation plan, or
iii) the company fails to implement its regularisation plan within the time frame or extended time frame stipulated by any of the regulatory authorities.
“Upon occurrence of any of the events set up in (i) to (iii), Bursa Securities shall suspend the trading of the listed securities of SDHB on the 6th market day after the date of notification of suspension by Bursa Securities and de-list the company, subject to the company’s right to appeal against the delisting,” the company said.
SDHB shares had been suspended from trading in mid-January this year.
SDHB said it is still looking into formulating a plan to regularise its financial position and to submit the regularisation plan to the relevant authorities for approval.
To recap, SDHB announced on Jan 6, 2022 that the company is an affected listed issuer under Practice Note 17 (PN17 company).
The company had triggered the prescribed criteria pursuant to Paragraph 8.04 and Paragraph 2.1(d) of Practice Note 17 of the listing requirements whereby its external auditors, Nexia SSY PLT, had expressed a disclaimer of opinion in the company’s audited financial statements for the 18-month financial period ended June 30, 2021.
